Undisclosed overseas bank account matter remanded back as consent waiver form signed

Niraguna Balik Satsang Mandal (India) Vs DCIT (ITAT Delhi)

ITAT Delhi held that addition towards undisclosed overseas bank account was confirmed on wrong notion of denial of appellant to sign consent waiver form. Matter remanded back as appellant has signed the consent waiver form and accordingly AO can carry out relevant enquiry.

Facts- The assessee is a society registered under Societies Registration Act, 1860. Since it was a registered trust showing income from donation of the contribution and accordingly it has been claiming exemption under Section 11(1) of the Act.

Based on some information received under DTAA that the assessee society was having undisclosed overseas bank account with HSBC Bank at Geneva, Switzerland, and the details of such bank account have not been disclosed by the assessee to the Income Tax Department.

The Assessing officer after analyzing the various statements on oath recorded during the course of search, held that in such circumstances the income in the foreign bank account is to be taxed as undisclosed income. Accordingly, AO made addition u/s. 69 of the Act of Rs. 18,10,35,773/-. Consequently, since the assessee has concealed the particulars of income and furnished inaccurate particulars, penalty proceedings u/s. 271(1)(c) of the Income Tax Act are initiated separately.

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