Akil Abbas Rassai Vs DDIT/ADIT (Inv)-1 (1) (ITAT Mumbai)
AO had received information that the assessee had foreign assets in the form of investments in the financial entities registered in United Arab Emirates and Isle of MAN, namely Zurich International Life Ltd (UAE) and RL 360 Life Insurance Company (Isle of Man) respectively. Therefore, during the course of investigation, a summon u/s 131(1a) of the BMA (Black Money Act) was issued to the assessee on 27.06.2023. The assessee in response filed the requisite details on 31.07.2023. Thereafter it was observed by AO that assessee has declared its status as resident in all ITRs. AO further observed that the foreign assets schedule (FA Schedule) was introduced in the ROI since AY 2012-13 in Finance Bill 2012 and in order to keep a track of the foreign assets and income generated thereon in the foreign jurisdiction of Indian residents. A resident must show his foreign assets in FA Schedule. Non-disclosure of which can lead to penalty u/s 43 of BMA. As assessee didnot disclosed foreign assets in FA schedule so AO issued show cause notice on 26.09.2023. Assessee, in response to the aforesaid show cause notice, made submissions vide letter dated 18.10.2023. After considering the submissions AO imposed penalty of Rs. 10,00,000/- for such non-disclosure. Assessee filed appeal before Commissioner who affirmed the penalty. Aggrived from the confirmation of penalty assessee preferred the present appeal.
