DCIT Vs Devidass Aswani (ITAT Jaipur)
Rule 46A Violation – CIT(A) Deleted ₹4.11 Cr Addition Based on Unverified Evidence – ITAT Sends Matter Back to AO-Non-Resident’s Foreign Remittance Accepted Without AO’s Cross-Check – Tribunal Restores Assessment
Both appeals were filed by the Department against separate orders of CIT(A) Dated 03.02.2025 (quantum) & 04.02.2025 (penalty).
Assessee, a Non-Resident Indian employed in Doha (Qatar), had not filed a return for AY 2015-16. Based on information about large deposits, AO reopened assessment u/s 147 & completed it ex-parte u/s 144, making an addition of ₹ 4.11 crore u/s 69 r.w.s. 115BBE as unexplained investments, representing time deposits of ₹ 4.08 crore and credit of ₹ 2.99 lakh in ICICI Bank. Penalty of ₹ 1.39 crore was also levied u/s 271(1)(c).
On appeal, CIT(A) examined the bank records & found that ₹ 3.75 crore was remitted from First Abu Dhabi Bank to ICICI Bank as NRE funds (USD 6,00,000 × ₹ 62.55). The deposits originated from foreign income of Assessee, and the small credit of ₹ 2.99 lakh represented NRE FD interest exempt u/s 10(4). The entire addition was deleted, holding the source fully explained. Consequently, the penalty u/s 271(1)(c) was also deleted as the quantum addition did not survive.
