Income Tax on Money brought in India by NRI
Facts of the Case
During assessment year under consideration, assessee NRI had acquired two residential properties in India.
Assessing Officer formed an opinion that assessee had failed to discharge onus cast upon him in terms of provisions of section 68 and he made addition under section 68 disbelieving explanation rendered by assessee in support of sources of money for acquisition of properties .
Decision of ITAT
It was found that purchase consideration was discharged by assessee partly by way of direct remittance from abroad to vendor and partly through banking channel and assessee also explained sources of credits appearing in NRE account as sale proceeds of gold bars and maturity proceeds of FDs .
Assessee also adduced evidence in form of copies of invoices in support of sale of gold, copies of cheques issued by buyer of gold bar and had also filed confirmation letter from bank that credit appearing in account represented maturity proceeds of FDs
Money brought in India by non-resident for investment or for other purpose is not liable to tax under provisions of Act and question of assessment to income-tax arises only when there is no evidence to show that amount in question in fact represents remittance from abroad.
On facts, assessee had discharged primary onus lying upon it and addition made by Assessing Officer could not be sustained