The Chennai bench of ITAT has held that no addition could be made for deposit

The Chennai bench of ITAT has held that no addition could be made for deposit 

The Chennai bench of ITAT has held that no addition could be made for deposit in NRE account when the assessee had no source of income in India. In this case, a non-resident assessee has deposited money in NRE account which was withdrawn by assessee’s parents in India. The same has been sourced to deposit the same in another NRO account from time to time. However, the AO rejected assessee’s explanation by stating that the cash was not re-deposited within a reasonable time frame. Accordingly, the AO worked out peak credit and added the same to the income of the assessee.



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