Case Law Details
Addl. CIT Vs Tejal Ashish Mehta (ITAT Mumbai)
ITAT Mumbai has upheld the deletion of a penalty of Rs. 10.00 lakhs imposed under section 43 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The penalty was levied for the non-disclosure of a life insurance policy held outside India in the income tax return. The ITAT ruled that the non-disclosure was a bonafide mistake and that the policy had been surrendered in the previous financial year. The decision relied on the precedent set in the case of Addl.CIT vs. Leena Gandhi Tiwari.
Extract from ITAT Order
It is an undisputed fact that by the end of F.Y.2015-16 the foreign asset ceases to exists as the assessee surrendered the said policy and the maturity amount of policy was duly reflected in Income Tax Return. Bonafide mistake in not disclosing foreign asset in Schedule –FA of the Income Tax Return is a reasonable cause for deleting penalty in the given circumstances. Furnishing of inaccurate particulars about asset located outside India cannot be imputed as the assessee had already made declaration under the Act the same was accepted and maturity amount of Life Insurance Policy has been disclosed in Income Tax Return. Thus, taking into consideration entire facts, we are of the view that the impugned order warrants no interference. Hence, the same is upheld and appeal by the Revenue is dismissed being devoid of any merit.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
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