DCIT, CENTRAL CIRCAL-6, NEW DELHI vs. DIPANKAR PAL, KOLKATA

ITA 1014/DEL/2020Status: DisposedITAT Delhi13 June 2024AY 2015-16Bench: SHRI G.S. PANNU (Vice President), SHRI ANUBHAV SHARMA (Judicial Member)6 pages
AI SummaryDismissed

What did the Tribunal hold?

The Income Tax Appellate Tribunal (ITAT) affirmed the CIT(A)'s decision, ruling that the foreign assets were acquired from income earned outside India by the assessee as a non-resident. Citing Circular No.13 of 2015, the Tribunal clarified that such income, not chargeable to tax in India, did not require declaration under Section 59 of the Black Money Act and thus could not be treated as unexplained cash credits under Section 68. The assessee successfully discharged the burden of proof.

What were the facts?

The Assessing Officer (AO) made an addition of Rs.2,38,38,170.99 to the assessee's income under Section 68 of the Income-Tax Act for Assessment Year 2014-15. This addition was for fresh assets introduced in the capital account (stock in trade of shares and enhancement in current assets from foreign bank accounts) treated as undisclosed investments. The assessee contended these assets were proceeds of foreign source income earned when he was a non-resident. The Commissioner of Income Tax (Appeals) deleted the addition.

What were the issues?

Whether foreign assets, acquired by an assessee from income earned as a non-resident outside India, can be treated as unexplained investments under Section 68 of the Income-Tax Act when introduced into the capital account, and whether reliance on Circular No.13 of 2015 by CIT(A) was correct.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 68,Section 59

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI

Before: SHRI G.S. PANNU, VICE- & SHRI ANUBHAV SHARMA

For Appellant: Ms. Rano Jain, Adv. And Ms. Mansi
For Respondent: Shri Vivek Kumar Upadhyay, Sr. DR
Hearing: 20.05.2024Pronounced: 10.06.2024

PER ANUBHAV SHARMA: JUDICIAL MEMBER: Revenue has filed the appeal against the order dated 13.11.2019 under Sections 143(1) of the Income-Tax Act, 1961

2 (hereinafter referred “the Act” ) passed by the learned Commissioner of Income-Tax (Appeals)-15, Kolkata in an appeal before him arising out of assessment order dated 28.12.2017 passed by the DCIT, Central Circle-6, Kolkata (hereinafter referred as “the A.O. or in short “AO”) under Section 143(1) of the Act for assessment year 2014-15. 2. Heard and perused the record.

3.

The assessee’s return was taken up for scrutiny and Assessing Officer had examined the additions in capital account and expenses claimed in the P & L account. Assessee is an indiv

The order continues below.

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