Smt. Bindu Todi Vs DDIT (Inv) (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) allowed the appeal filed by the assessee against the order passed under Section 10(3) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, for Assessment Year 2018-19, holding that the assessment proceedings were barred by limitation.
The assessee, an individual and proprietor of M/s Jade Knits, was stated to have been a director of Woodstock Universal Ltd., a company incorporated in the British Virgin Islands on 10.04.2007 and struck off on 01.11.2014. One share valued at USD 1 had been issued to the assessee by the company. The Assessing Officer alleged that certain payments received by the assessee from the foreign entity, amounting to USD 11,020 and USD 25,000 during 2008, had not been disclosed in the return of income. Based on this allegation, additions aggregating to Rs.15,66,870 were made under the Black Money Act.
The assessee challenged the assessment primarily on the ground that it was time-barred. It was argued that notice under Section 10(1) of the Black Money Act had been issued on 10.04.2018. Under Section 11 of the Act, an assessment order is required to be passed within two years from the end of the financial year in which such notice is issued. Accordingly, the limitation period expired on 31.03.2021. However, the assessment order was passed only on 17.02.2022.
