Pawan Kumar Jaggi Vs ACIT Central Circle-25 (Delhi High Court)
Delhi High Court held that estimation of deposit in foreign bank account cannot be questioned in absence of assessee producing the bank account statement of the same. Accordingly, AO directed to re-examine the same provided the relevant statements are submitted.
Facts- A search was conducted on the premises of the Assessee on 17.10.2000 and a debit card of the overseas bank – Barclays Bank, PLC St.40, Birmingham, London, United Kingdom was found in the joint name of the Assessee and his wife (Smt. Jyoti Jaggi).
Thus, AO raised a demand of ₹50,00,000/- on account of unexplained credit in respect of the Assessee. A protective assessment was also made in the case of Assessee’s spouse (Smt Jyoti Jaggi).
CIT(A) reduced the addition from ₹50,00,000/- to ₹25,00,000/-. In addition, CIT(A) also considered it apposite to make an addition of ₹2,80,000/- being equivalent to an amount of GBP 4000, which was admittedly received by the Assessee. ITAT affirmed the order of CIT(A).
Conclusion- Held that we find it difficult to accept that any interference with the estimation of the deposit made in the bank account, are called for in the absence of Assessee producing his own bank account statement. Thus, the AO is directed to re-examine the question of quantum of the addition on account of the deposits made in the foreign bank account maintained by the Assessee during the relevant period (Barclays Bank, PLC St.40, Birmingham, London, United Kingdom). This is subject to the Assessee producing the authenticated bank statement of the said bank account for the relevant period. In the event, the Assessee produces the same, the AO shall determine the addition based on the said account. And, the additions, as directed by the learned CIT(A) and as upheld by the learned ITAT in the impugned order, will shall stand modified to the said extent.
