Ashok Shankar Vs ACIT (ITAT Delhi)
Summary: The Delhi ITAT dismissed both appeals filed by the assessee for assessment year 2020-21 under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The case concerned an overseas bank account with Emirates NBD Bank, Dubai, in which AED 5,000 had been deposited, and an AED 3,000 investment in the share capital of Santech International FZE, UAE. The Revenue had received information from UAE authorities under the India-UAE DTAA Exchange of Information provisions and the assessee had not disclosed the foreign assets in his income-tax returns or Schedule FA. The assessee contended that the AED 5,000 had been transferred by a friend for starting a business and that he had not made the AED 3,000 investment in Santech. The Tribunal held that the explanations and sources were not satisfactorily established. It held that the undisclosed foreign assets came to the Assessing Officer’s notice in financial year 2019-20 and therefore were chargeable for assessment year 2020-21 under Sections 3, 4 and 5 of the 2015 Act. The quantum additions were upheld. The Tribunal also upheld the penalty of Rs. 1,86,810/- under Section 41, while leaving open the broader question whether penalty under Section 41 is mandatory or discretionary.
