SMT.REKHA RAMAMURTHI ACHYUTUNI,BANGALORE vs. THE INCOME TAX OFFICER WARD-6(3)(1), BANGALORE

The assessee has filed an appeal against the order of Commissioner of Income Tax (Appeals)-6, Bangalore passed under Section 143(3) and 250 of the Income Tax Act, 1961 ('the Act').

The assessee has raised the following grounds of appeal :

The Brief facts of the case are that the assessee is a Citizen of USA and working in USA along with her spouse and offering the income earned in USA for taxation. The assessee has made investments in USA along with her husband in financial instruments and continues to hold such investments. All the investments are out of the income earned in USA and after returning to India, the assessee has filed Income Tax Return in respect of income earned in India. The Return of Income was filed on 30.07.2013 with total income of Rs.6,61,840/-.The case was selected for scrutiny under CASS to verify the balances in foreign bank accounts. Accordingly Notice under Section 143(2) and 142(1) of the Act were issued. In compliance, the learned Authorized Representative appeared from time to time and submitted the details. On verification, the Assessing Officer found that the assessee has maintained various Bank Accounts in foreign countries and USA. The Assessing Officer found that there are differences in foreign assets/accounts/Brokerage as compared to previous year and called for explanations. The Assessing Officer dealt on foreign bank accounts and was not satisfied with the explanations in respect of difference of Rs.52, 54,672/- in Accounts, which could not be reconciled. Further taxed the dividend, interest income and short term capital gains earned outside India aggregating to Rs10,08,076/- and also cash deposits in HDFC Bank to the extent Rs3 lakhs could not be supported with evidences on nature and source. The AO finally assessed the total income of Rs.72,37,130/- and passed the order under Section 143(3) of the Act dt.30.03.2016. Aggrieved by the order, the assessee has filed an appeal with the CIT(Appeals). The CIT(Appeals) considering the grounds of appeal, findings of the Assessing Officer has concurred with the action of the Assessing Officer and dismissed the assessee's appeal. Aggrieved by the order of CIT(Appeals), the assessee has filed an appeal with the Tribunal.