Case Law Details
Mohan Thakur Vs ACIT (ITAT Mumbai)
Facts- As per the report, information was received from the Australian taxation office that the Assessee under consideration has transferred funds amounting to 12,97,122 AU (Australian Dollars) to many of his relatives through hawala system for the period of F.Y. 2007-08 to 2012-13. Shri. Shagun Thakur (son) has claimed before the Australian Taxation office, that the said amount was received by him from his father as gift to buy a property situated in Australia. In his statement recorded before the Australian Taxation Office, Shri. Shagun Thakur has submitted that his father has instructed to his friends and business associated overseas to send the funds to him through hawala system i.e. Informal Money Transfer System (I.M.T.S). As per the statement on oath of Shri. Shagun Thakur before the Australian Taxation Office, it is recorded that the said method is adopted by the assessee, Shri, Mohan Thakur due to the current restrictions in foreign exchange transfers in India.
Conclusion- We find that the addition is solely made on the basis of statement of the assessee’s son before Australian Tax Authorities and affidavit by the assessee before them that fund found in possession of the son were arranged by assessee by hawala transaction.
There is absolutely no other material in the hand of the A.O. of proving the addition in the hands of the assessee. Despite the assessee’s request, the copy of information received from Australian tax Authority has not been given to the assessee. In these circumstances, the addition made, which is based upon the information from a foreign source, without confronting the same to the assessee and without any corroborative material is not at all sustainable. The case laws referred by the ld. Counsel of the assessee as above are germane and support the case of the assessee.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
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