ANIL BHANSALI Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS is an appeal by the assessee against the order dated 31.10.2013 passed by the learned CIT(A), Hyderabad pertaining to assessment year 2007 -08.

(2.) BRIEFLY stated, assessee an individual is employed with M/s. Microsoft India (R & D), Hyderabad. For the assessment year under consideration assessee filed its return of income on 19.03.2008 declaring total income of Rs. 2,25,66,227 under the head 'Salary'. Assessee filed the return as 'Resident but not ordinarily Resident'. On verification of information available on record, the A.O. noticed that in Form 12BA, assessee claimed to have received perquisites amounting to Rs. 1,50,29,713 but the same was not offered to tax though, the employer deducted tax at source on such amount. For further verification, A.O. in exercise of power under section 133(6) of the Act called for information from M/s. Microsoft India and also ICICI Bank, Madhapur branch, Hyderabad wherein the assessee was having his bank account. As per the information obtained from the Bank, the AO noticed that during the relevant previous year, the assessee has received US $ 2 lakh on 24.04.2006 and another amount of US $ 2 lakh on 24.07.2006, converted to Indian rupee both amounting in total to Rs. 1,80,76,000. On the basis of the aforesaid bank statement and the information submitted by Microsoft India Ltd., in their letter dated 10.03.2009, the AO formed a belief that the amount of Rs. 1,80,76,000 received by the assessee which is more than the value of perquisite declared by the assessee has escaped assessment. Accordingly, assessing officer reopened the assessment under section 147 of the Act by issuing notice under section 148. The gist of reasons recorded by the AO for reopening the assessment are as under:

(3.) FURTHER , the A.O. observed that as per the ICICI Bank statement, the total credits are to the tune of Rs. 1,80,76,000 whereas, as per Form No. 16, the amount shown towards perquisites is Rs. 1,49,80,713 thereby, leaving a balance of Rs. 30,46,287 which required clarification from the assessee. In this regard, the assessee submitted that though as per the bank statement, assessee received the amount of Rs. 1,80,76,000 in India during F.Y. 2006 -07, but the same was in the nature of mere remittance into India through normal banking channel from assessee's post tax savings located in USA and does not represent/include any income either under the head "Salary" or any other head of income in India during F.Y. 2006 -07. Hence, the remittances were not offered to tax. The A.O. however, was not convinced with the explanation of the assessee. Accordingly, the A.O. made the additions of Rs. 1,49,80,713 and Rs. 30,46,287 to the income returned by the assessee which resulted in determination of total income at Rs. 4,05,93,227.