Penalty proceedings were initiated against assessee on account of undisclosed foreign investments . Assessee claimed that such alleged investments could have been made by his late father, however, he was unable to trace out files pertaining to same . Revenue rejected such explanations and passed an order raising demand on assessee . Subsequently, two show cause notices were issued upon assessee seeking explanation as why penalty under sections 41 and 43 of BMI Act should not be levied . Writ petition was filed by assessee challenging said notices . Court held that the assessee had preferred an appeal under section 15 against assessment order . Immediately on receipt of said notices, assessee had issued a detailed reply and sought to defer penalty proceedings, as appeal filed by him was pending . Since the assessee had responded in great detail to impugned notices, writ petition was to be disposed of directing assessee to appear before concerned authority and make his submissions and thereafter revenue to pass an appropriate order . Till such time orders were pronounced, no coercive steps should be initiated by revenue . (AY. 2017-18)
Periyasamy Ramesh Rajah v. Addl. CIT (2023) 459 ITR 381/ 292 Taxman 551 (Mad.)(HC)
Black Money (Undisclosed Foreign Income & Assets) and Imposition of Tax Act, 2015 .
S. 41 :Penalty in relation to undisclosed foreign income and asset – Penalty for failure to furnish in return of income, an information or furnish inaccurate particulars about an asset (including financial interest in any entity) located outside India -Pendency of appeal – Directed to hear the assessee and pass the order after considering the submission of the assessee . [ S. 15, 42 , 43 , Art. 226 ]