Additions made in reassessment under Section 147 based on Bank accounts in Geneva - Validity thereof

Facts:

Arising out of information exchange under Indo-France DTAA Article 28 assessee and his brothers were alleged to be beneficiary of 4 bank accounts in Geneva, Switzerland. A search and seizure was undertaken regarding the same and reassessment proceedings were kicked off where in the AO made additions under Section 69A unexplained money that the minimum balance to open these accounts individually was CHF 100,000 which was added as income. On appeal CIT(A) dismissed the additions of the AO citing that the revenue did not bring forth any concrete information to hold assessee's to be the beneficiary holders of the accounts and the account balances as well. On appeal by revenue and by the assessee's the plea of the assessee's was that under Rule 27 the AO went beyond his jurisdiction in making the addition and the reassessment itself was null and void as the additions made on the minimum balance had no relevance to the information unearthed.

Held in favour of the assessee that the reassessment was wrongly invoked. The order of CIT(A) in dropping the additions under Section 69A requires no intervention.

Case: Dy. CIT v. Milan Kavinchandra Parikh 2023 TaxPub(DT) 1924 (Mum-Trib)