Tejash Mahendrabhai Patel Vs ITO (ITAT Ahmedabad)
Foreign remittance from disclosed LTCG can’t be treated as unexplained: ITAT Ahmedabad deletes ₹1.03 cr addition
Ahmedabad Tribunal allowed Assessee’s appeal & deleted addition of ₹1,03,43,401 u/s 69A made on account of capital introduced during the year. Tribunal noted that the impugned amount represented remittance from Assessee’s own US bank account to ICICI Bank, India, & source stood fully explained as long-term capital gains on sale of shares in AY 2012-13, which were disclosed, scrutinised & accepted u/s 143(3) r.w.s. 147. Tribunal recorded detailed fund trail showing transfer of funds from India to USA, subsequent repayment of loan by third party in USA & eventual remittance back to India through banking channels, supported by bank statements, SWIFT advices & assessment records. Once source & movement of funds were established beyond doubt, treating the remittance as unexplained was held to be legally unsustainable. Accordingly, addition was deleted in full & appeal was allowed
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal has been filed by the Assessee against the order dated 10.05.2024 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (‘Ld. CIT (A)’ in short), under Section 250 of the Income-tax Act, 1961 (‘the Act’ in short) for Assessment Year 2015-16.
