• Hon’ble Mumbai ITAT while dealing with section 43 of Black Money Act in case of Sanjana Sanjay Arora (D Décor Exports, Mumbai) held that inadvertent error in disclosing the add-on account number in the return as against main account number does not attract penalty. ________________________________________
📜 Facts
• Assessee held a GBP account (No. 73155706) with Barclays Bank UK PLC.
• Barclays also opened USD (No. 74565588) and EURO (No. 87474666) accounts as add-ons.
• Assessee disclosed peak balance of GBP account (₹1.67 crore) but mistakenly mentioned the USD account number in Schedule FA.
• AO held this as non-disclosure and levied penalty under Section 43.
• CIT(A) upheld penalty.
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⚖️ Tribunal’s Findings
• Assessee consistently argued that only GBP account was operative; USD/EURO accounts had nil balances.
• Disclosure of peak balance was made, but account number error was inadvertent.
• However, no clear evidence was produced to show that USD/EURO accounts were merely add-ons linked to GBP account.
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📌 Order
• ITAT set aside CIT(A)’s order.
• Matter remanded to AO for de novo adjudication after seeking clarification from Barclays Bank.
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🔎 Key Takeaway
• Penalty under Section 43 BMA requires clear non-disclosure or inaccurate particulars.
• If disclosure is made but account number mismatch occurs, factual verification is crucial.
• Tribunal emphasized fair play and justice, remanding for fresh inquiry rather than outright confirming penalty.
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