Srinjoy Bose Vs ADIT (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT), Kolkata Bench, delivered its order in the case of Srinjoy Bose vs Assistant Director of Income Tax (ADIT) concerning Assessment Year 2020–21. The appeal arose from the order passed under Section 17 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (“Black Money Act”) by the Commissioner of Income Tax (Appeals)-20, Kolkata, which upheld the assessment made under Section 10(3) of the Act.
The assessee, a non-resident Indian (NRI), had worked in Dubai during financial years 2000–01 and 2001–02, during which time he took two life insurance policies—one from Standard Life Assurance Company on 4 December 2000 and another from Scottish Provident International Life Assurance Ltd. on 14 December 2000. The initial premiums were paid from income earned in Dubai. After returning to India, the subsequent premiums were paid by the assessee’s father, also an NRI, from income earned abroad. The policies were later discontinued, and in 2018–19, the assessee received the surrender value in his Indian bank account. This amount, after deductions, was declared in the assessee’s income tax return for Assessment Year 2019–20, and tax of ₹39,00,000 was paid.
The Assessing Officer (AO), upon receiving information about these insurance investments, initiated proceedings under Section 10 of the Black Money Act on the grounds that the assessee had not disclosed these foreign assets in his income tax return. Summons under Section 131 were issued, and the assessee provided details of his non-resident status, payment of premiums from foreign income, correspondence with insurance companies, and reasons for discontinuing the policies. The assessee explained that the omission to disclose these assets was due to a bona fide belief that the policies had lapsed and the invested amount forfeited.
