AO made an addition on the ground that the assessee could not prove with documentary evidences that the deposits are not from India. CIT(A) deleted the addition on the ground that it is a foreign bank account of a non-resident and the deposits therein cannot be added in the hands of the assessee individual. On appeal by the revenue, the Tribunal held that the assessee has used his invalid Indian passport which he should have surrendered to the Indian authorities in opening a bank account in Geneva. Hence, the intent of the assessee is not above board. Further it is settled law from the Hon’ble Apex Court in Kapurchand Shrimal v. CIT (1981) 131 ITR 451 (SC) that the revenue authorities are entitled to look into the surrounding circumstances and economic reliability. The Assessing Officer is directed to make further investigation into the source of the deposits in the bank accounts. Accordingly, the matter was set aside to the Assessing Officer. (ITA No. 5889/Mum/2016 dt.01.06.2018 ) (AY. 2003-04),
DCIT v. Rahul Rajnikant Parikh & Ors (Mum.) (Trib.), www.itatonline.org
S.5 : Scope of total income – Non-resident foreign national – Alleged deposits in HSBC Foreign Bank account at GENEVA – Deletion of the addition by the CIT(A) is held to be not justified – AO is directed to make further investigation to find out whether the source of the deposits in foreign account originated from India. [S.5(2), 6, 9]