The assessee was a resident senior citizen aged about 100 years and his son shri \u00a0Balaji Ramamoorthy \u00a0was a citizen of the United States of America. For the assessment year\u00a02016-17\u00a0, the Assessing Officer issued notice under section\u00a010(1)\u00a0of the\u00a0Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015\u00a0, calling for bank statements relating to investments of large sums in two United Kingdom-based trusts, Windsor Trust \u00a0and Dalham Trust , to explain the source of funds for making the investments. Not accepting the assessee\u2019s explanation for the initial corpus invested in the trusts, the Assessing Officer made additions towards undisclosed investment. The Commissioner (Appeals) sustained the additions . On appeal the Tribunal held\u00a0\u00a0 that the sole basis for the Assessing Officer to arrive at the conclusion was the Common Reporting Standard information in the Department\u2019s Insight portal showing the account balances in the two trusts, on the basis of which he concluded that the assessee being a settlor of the trust became the principal beneficiary and, consequently, the investment in the trust was undisclosed income of the assessee under section\u00a010(3)\u00a0of the\u00a0Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015\u00a0. The Assessing Officer\u2019s findings was not tenable for the simple reason that except for the Common Reporting Standard information, he did not have any other evidence to allege that the assessee had made contribution to the trusts. The Assessing Officer neither had the assessee\u2019s bank statement to allege that the assessee had made outward remittance of funds nor could he prove that the assessee was deriving any income from the trusts outside India. \u00a0Investment in trust represented immovable property sourced through bank loan . Balance in other trust owned up and explained by assessee\u2019s Non-resident son . Accordingly the\u00a0 addition is deleted . (AY.2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 .<\/p>\n
S. 2(11):Undisclosed asset located outside India \u2013 Assessment -Black Money \u2014 Income from undisclosed sources \u2014Investments in UK-based trusts \u2014 Only source of information Department\u2019s common reporting standard information showing account balances in trusts and recitals in trust deed \u2014 Investment in trust represented immovable property sourced through bank loan \u2014Balance in other trust owned up and explained by assessee\u2019s Non-resident son \u2013 Addition is deleted . [ 10(3), ITAct , S. 139, Explan 4, The Foreign Exchange Management Act, 1999 , S.16 ] <\/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":[1],"tags":[],"class_list":["post-51258","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dkK","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51258","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=51258"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51258\/revisions"}],"predecessor-version":[{"id":51259,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51258\/revisions\/51259"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=51258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=51258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=51258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}