Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

S. 43 : Penalty for failure to furnish return of income or furnish inaccurate particulars of an asset ( Including financial interest in any entity ) outside India- Non-disclosure of foreign assets – Use of word “may” in section 43 is directory and not mandatory – Assessing Officer has discretion to impose or waive penalty depending on facts – Mere failure to disclose foreign investment does not automatically warrant penalty – Interpretation of statutes . [S. 46(3)]

Black Money (Undisclosed Foreign Income and Assets) Act , 2015 .

S. 10(3) :Assessment – Charge of tax Undisclosed foreign asset – Asset ceased before 1.7.2015 – Not taxable – Penalty – Non-disclosure of asset – Ceased before AY 2012–13 -Penalty not leviable. – Doctrine of election/approbate and reprobate- Once proceedings under the IT Act are consciously chosen, the Revenue cannot subsequently invoke BMA. [ S. 2(11), 3(1) , 41, 43 ,BMA Valuation Rule, 3, Income tax Act , 1961 , S. 90, 131(IA), 132, 132(4) , 132(4A) , 292C ]

Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BMA) .

S.18:Appeal to Appellate Tribunal – Rectification of mistake apparent from the record – Failure to consider written submission- Mistake apparent from record – Order is recalled – Tribunal in the original order Rashesh Manhar Bhansali v . Add.CIT ( 2022)193 ITD 141 ( Mum)( Trib) has up held the provisions of the Black Money (Undisclosed Foreign Income & Assets) and Imposition of Tax Act, 2015 can indeed be pressed into service in respect of an undisclosed foreign asset or income even if it was already in the knowledge of any Governmental authorities, other than the jurisdictional Assessing Officer, as at the point when the said legislation came into force. Accounts not in existence at the Black Money Act, 2015 came into force – The new legislation operates for those accounts and assets too.[ S. 2(11), 5(1)(i),18(7),40(1 ), 40(2) , ITAct , 132(4),254(2) R. 3(1)( e)]

Direct Tax Vivad Se Vishwas Act, 2020

S.4: Filing of declaration and particulars to be furnished – Amount payable by declarant – Eligible assessee- Pendency of appeal – Rejection of declaration- Appeal filed by the assessee in the year 2015 was not pending as on 31st Jan., 2020—Order passed by the Tribunal recalling the order – Appeal of the assessee has to be considered as pending as on 31st Jan., 2020 which is the specified date as per the VSV Act— Order of rejection is quashed . [S. 3 , 5(2), ITAct , S. 254(1), Art. 226 ]