{"id":12838,"date":"2020-10-09T14:35:44","date_gmt":"2020-10-09T14:35:44","guid":{"rendered":"https:\/\/itatonline.org\/digest\/dr-atul-t-patel-v-dcit-2019-108-taxmann-com-227-2020-181-itd-812-ahd-trib\/"},"modified":"2021-06-25T04:24:17","modified_gmt":"2021-06-24T22:54:17","slug":"dr-atul-t-patel-v-dcit-2019-108-taxmann-com-227-2020-181-itd-812-ahd-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/dr-atul-t-patel-v-dcit-2019-108-taxmann-com-227-2020-181-itd-812-ahd-trib\/","title":{"rendered":"Dr. Atul T Patel. v. DCIT (2019) 108 taxmann.com 227 \/(2020) 181 ITD 812\/ 193 DTR 221\/ 207 TTJ 252 (Ahd) (Trib.)"},"content":{"rendered":"<div>\n<p>A search and seizure operation was carried out in case of assessee in course of which it was found that assessee had set up a private discretionary trust for benefit of his family members in British Virgin Islands.\u00a0 None of investments made in trust were accounted for at any stage or disclosed to revenue authorities . Subsequently, trust was terminated and amount received by beneficiaries was offered to tax. In course of assessment proceedings, AO brought \u00a0to tax partial withdrawals as income of beneficiary who withdrew money.\u00a0 CIT (A) confirmed action of AO\u00a0 . On appeal the Tribunal held that as far as beneficiary is concerned, once source of funds received by him is explained, taxation could possibly be confined only to income component.\u00a0 In case of settlor, he has to explain investments, which were not accounted for in his books of account or disclosed to revenue authorities at any stage prior to detection in search proceedings. On facts\u00a0 since in instant case, investment in trust remained unexplained and uncorroborated, matter was to be remitted to AO for\u00a0 examination de novo on all aspects. ( AY.2007 -08, 2008 -09)<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>S. 69 :Unexplained investments &#8211;  Private discretionary trust \u2013 Beneficiary \u2013 Settlor \u2013 Beneficiary can be taxed only income component \u2013 Settlor has to explain the source of investments \u2013 Matter set aside \u2013 Penalty appeal also set aside .[ S.271(1) ( c) ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-12838","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3l4","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12838","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=12838"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12838\/revisions"}],"predecessor-version":[{"id":19610,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12838\/revisions\/19610"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=12838"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=12838"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=12838"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}