ACIT Vs Himanshu Gupta (ITAT Delhi)
ITAT Delhi held that foreign share holding duly disclosed with Income Tax Department and hence the same cannot be taxed under the Black Money Act. Accordingly, order of CIT(A) upheld and appeal of revenue dismissed.
Facts- A search and seizure action was conducted on 28th November, 2017 in the case of Vrindawan Group which includes the assessee and his family members. During the course of Black Money Act( BMA) proceedings, the Assessing Officer observed that the assessee is holding 5% shares in M/s Innovation Worldwide Ltd, a company incorporated in Hong Kong. The Assessing Officer further observed that at the time of search, statement of the assessee was also recorded on 01.12.2017, in which statement the assessee categorically admitted that he was holding shares of M/s Innovation Worldwide Ltd. Hong Kong. Thereafter, the Assessing Officer observed that the assessee has not disclosed the above investment in shares of Hong Kong company in his Income Tax Return for AY 2016-17 and hence the assessee is liable to be proceeded under the provisions of this Act within the meaning of section 31(c) of Black Money Act. AO made an addition of Rs.1,30,00,000/- on the ground that the assessee has not disclosed this income from foreign assets in the return of income as per law.
