NRI’s Swiss bank deposits, non-taxable sans AO establishing nexus with India sourced income: Mumbai ITAT

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NRI’s Swiss bank deposits, non-taxable sans AO establishing nexus with India sourced income: Mumbai ITAT

Mumbai ITAT deletes addition u/s. 68/69 in hands of assessee-individual (a non-resident) relating to deposits found in HSBC Bank, Geneva during AY’s 2006-07 and 2007-08, holds that AO erred in making addition without establishing the fact that the said deposits were sourced out of income derived in India; Pursuant to information from Investigation Wing that assessee has a bank account with HSBC Bank, Geneva, AO had made addition on the ground that assessee did not prove that the HSBC bank account had no connection with Indian income; Firstly, referring to Finance ministry clarifications and black money legislation, ITAT highlights government’s intention of not taxing NRIs in respect of foreign bank account and assets; Next, noting that the AO merely relied on the base note received from French Government and did not conduct any independent inquiry, ITAT opines that “the AO is not justified in placing the onus of proving a negative on the assessee.”; Also observes that assessee has filed necessary evidences to prove that he is a non-resident since 25 years and his foreign bank account and assets did not have any connection with India, relies on co-ordinate bench ruling in Dipendu Bapalal Shah, rejects Revenue’s reliance on co-ordinate bench ruling in Rahul Rajnikant Parikh.:ITAT

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