Case Law Details
Deepak B. Shah Vs ACIT Mumbai (ITAT Mumbai)
In the present case the Income Tax Department sought to tax fund lying in a Swiss bank account as “Unaccounted Income” in the hands of two residents of Mumbai. The appellants maintained account in Swiss Bank stated that they had no contribution in the said account as because the said account is a discretionary Trust Account.The A.O imposed tax by adding the balance maintained n Swiss Bank to the income of the said appellants.
The discretionary trust did not made any distribution of fund to the beneficiaries. The appellants did not make any contribution to the said account. So the Tribunal held that since the Swiss Bank account was owned & operated by an offshore discretionary trust in which two individuals are named as beneficiaries, the income could not be taxed in their hands unless & until the funds were distributed by the Trust.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
These four appeals by two different assessees are directed against the two different orders of Commissioner of Income Tax(appeals)- 27 Mumbai {(hereinafter called CIT(A)} even dated 01.08.2014 which are in turn arose out of the assessment orders of Assistant commissioner of Income Tax , Circle-16(2) (hereinafter called the AO) passed u/s 143(3) 147 of the Act dated 18.03.2014 .
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good info.