| Case ID |
178bbdbf-3ca1-47ef-a2a7-6d8a3c80d2e3 |
| Body |
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| Case Number |
I.T. REFERENCE Nos. 47 OF 1963 AND 7 OF 1964 |
| Decision Date |
Feb 16, 1970 |
| Hearing Date |
Feb 13, 1970 |
| Decision |
The Tribunal erred in law by concluding that the remittances from Iran were the assessee's income assessable under section 4(1)(b)(iii) of the Income-tax Act. The evidence presented did not sufficiently support the claim that the remittances were from accumulated profits. The burden of proof rested with the assessee to demonstrate that the remittances were not from profits but from other sources. The findings of the Appellate Assistant Commissioner, who had previously accepted the claim of Rs. 4,00,000 in cash, were incorrect. The case highlights the complexities of proving the source of income in non-taxable territories, and the necessity for the assessee to provide credible evidence to substantiate claims of inheritance and cash availability. |
| Summary |
This case revolves around the assessment of income tax for an Iranian national who claimed remittances from non-taxable Iran as his inherited wealth. The key issue was whether the remittances represented accumulated profits or other sources. The Appellate Assistant Commissioner initially accepted the claim of inheritance of Rs. 4,00,000 in cash. However, the Tribunal later rejected this assertion on the grounds that the evidence was insufficient and misplaced the burden of proof on the assessee. The decision emphasizes the importance of credible evidence in tax assessments, particularly concerning foreign income sources and the presumption of accumulated profits. The case illustrates the challenges faced by taxpayers in establishing the legitimacy of their claims in the context of international tax regulations. This ruling is significant for taxpayers engaging in foreign business operations, as it clarifies the evidentiary requirements for proving the source of remittances. The case references key sections of the Income-tax Act, particularly sections related to income escaping assessment and the procedures of the Appellate Tribunal. |
| Court |
Bombay High Court
|
| Entities Involved |
|
| Judges |
MODY, ACTG. C.J.,
K.K. DESAI, J.
|
| Lawyers |
S.E. Dastur,
R.J. Kolah,
J.P. Pandit,
G.N. Joshi,
R.J. Joshi
|
| Petitioners |
B.R. Bamasi
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1972 SLD 426 = (1972) 83 ITR 223
|
| Other Citations |
CIT v. Jankidas Kaluram Rewari [1949] 17 ITR 406 (E. Punj.),
CIT v. R.M. Raja [1957] 31 ITR 217 (Bom.),
Kalyanji Ukka & Co. v.CIT [1963] 49 ITR 740 (Bom.),
CIT v. Hazarimal Nagji & Co. [1962] 46 ITR 1168 (Bom.),
Kanpur Industrial Works v. CIT [1966] 59 ITR 407 (All.),
Venkata Rao v. Satyanarayanamurthy AIR 1943 Mad. 698 (FB),
CIT v. Kumbakonam Mutual Benefit Fund Ltd.[1964] 53 ITR 241 (SC),
CIT v. Ranchhoddas Karsondas [1959] 36 ITR 569 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
9,
147,
255
|