K. Mohammed Haris v. Income-Tax Department (2022) 448 ITR 707 (Karn.)(HC)

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

S. 50 : Penalty-Undisclosed Foreign income and assets-Offences and prosecution-Failure to furnish information relating to foreign income or assets in income-tax return-Time limit-Law applicable-Amendment of Section 139(5) with effect from 14-5-2016-Revised return can be furnished within one year of relevant assessment year or before completion of assessment-Revised return filed before expiry of limitation-Prosecution not valid. [S. 4, IT Act, 6, 132, 139(5) Code of Criminal Procedure, S. 200]

The Income-tax Department has filed complaint for the offence punishable under section 50 of the Black Money (Undisclosed Foreign Income and Assets)and Imposition Act, 2015 on the ground that in the course of search u/s 132 of the Act, at residence   it was found that the assessee had a bank account in Bank of Baroda Sharjah Branch from which the assessee had earned interest which was not disclosed in the return. Subsequently the assessee has filed revised return in which the interest was disclosed.   Trail court took cognizance and registered a criminal case against the accused. Accused filed petition for quashing the criminal proceedings.  Allowing the Criminal petition the Court held, that the assessee had filed returns for every assessment year. In the returns for the assessment year 2017-18 filed on March 31, 2018 he had not declared three assets. But he subsequently filed a revised return on February 23, 2019 after making payment of tax in the voluntary disclosure scheme introduced by the Government of India. The assessee had time till September 31, 2019, i. e., one year from the date of filing the original return, in order to file the revised return. The assessee had already filed the revised return in terms of section 139(5) of the Income-tax Act, on February 23, 2019. Hence the criminal proceedings against the assessee were not valid. (AY.2017-18)