Payment received through banking channels is enough to find out the source and reason

Last updated: 08 November 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
In this case return of income declaring total income of ` 108107/- was filed on 31.10.1993 after claiming deduction of ` 3,08,43,785/- u/s. 80HHC of the Act. Original assessment in this case was completed u/s. 143(3) on 29.3.1996. At the time of original assessment, deduction u/s. 80HHC in respect of exports made by the assessee to M/s Taj Al-Khaleej General Trading Co., Dubai (M/s Taj, Dubai) was allowed. A search u/s. 132 of the Act was conducted against the assessee and other companies and concerns of M/s M.S. Shoe group on 29.6.1994. The cases of the group were also investigated by the DRI, who communicated with the Assessing Officer enclosing a copyof the statement of Sheikh Saud-bin-Abdullah Rashid Alnuaimi. In this statement the Sheikh has declared that he was the registered holder of trade licence issued by the Government of Dubai, UAE in favour of his concern M/s Taj Al-Khaleej General Trading Co., Dubai. The Sheikh specifically stated that he never had any business dealings or commercial transactions with M/s M.S. International or Sh. Pawan Sachdeva (husband of the assessee) or any of their concerns. The explanation given by the assessee regarding their exports to M/s Taj, Dubai were not accepted by the Assessing Officer and an addition of ` 1,89,52,588/- was made to the income of the assessee.

Citation :
Dy. Commissioner of Income Tax, Circle-26(1), New Delhi D-9, Vikas Bhavan, New Delhi (Appellant) Vs. Smt. Sadhna Sachdeva, Prop. M/s Tulips, GH-2, 85A/86A, Ankur Apartment, Paschim Vihar, New Delhi (PAN/GIR NO. : ABIPS7481A) (Respondent)