PCIT Vs Aditi Avinash Athavankar (Bombay High Court)
The Bombay High Court considered an appeal concerning the levy of penalty under Section 43 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The Revenue argued that the assessee, the wife, failed to disclose a foreign investment in Schedule FA for the assessment year 2017–2018. However, the record showed that her name appeared only as a joint holder in an investment made by her husband for administrative convenience. It was also undisputed that the husband had already disclosed the investment in his return of income and included it in Schedule FA.
Although the tax effect in the appeal was only Rs. 10 lakhs, the Revenue submitted that the case fell under an exception in CBDT circulars due to its connection with penalty proceedings under the Black Money Act. The Court therefore examined the matter on merits. The Tribunal had earlier held that the imposition of penalty was discretionary and, considering the circumstances of joint holding and full disclosure by the husband, found no justification to levy penalty on the wife. The High Court observed that the Tribunal’s decision reflected a proper exercise of discretion and that no perversity was shown in its reasoning.
