ACIT Vs Ansul Darshan Shah (ITAT Ahmedabad)
No Black Money Act Penalty as Section 153A Return Replaced Original Return; ITAT Rejects BMA Penalty Due to Voluntary Disclosure of Foreign Assets After Search; Foreign Asset Disclosure in Section 153A Return Bars Section 43 BMA Penalty: ITAT.
The Revenue filed four appeals against separate orders dated 27.06.2024 passed by the Commissioner of Income Tax (Appeals)-11, Ahmedabad, relating to Assessment Years 2016-17 to 2019-20. Since the issue involved in all appeals was identical, the Tribunal considered the facts of Assessment Year 2016-17, with its decision applying equally to the remaining years.
The assessee had acquired foreign assets in the USA from funds earned while being a non-resident in India. However, these foreign assets were not disclosed in Schedule FA of the original returns filed under section 139(1) of the Income Tax Act. Following a search and seizure action under section 132 conducted on 10.04.2019, the assessee voluntarily disclosed the foreign assets and reported them in returns filed under section 153A for Assessment Years 2016-17 to 2019-20, as well as in the return filed under section 139(1) for Assessment Year 2020-21.
The Assessing Officer imposed a penalty of Rs.10 lakh under section 43 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, on the ground that the foreign assets had not been disclosed in the original returns.
