Summons under Section 131(1A) to NRI

[JayachandaS andCo]

Dear Experts,

I was approached by an NRI who had received summons under Section 131(1A) for non-disclosure of financial interest in foreign bank accounts. For the year in question, the assesse was a Non-Resident for tax purposes. The summons has mentioned a list of documents / information to be submitted such as foreign income sources, foreign holdings, foreign interests, foreign bank accounts. The assessee did not have income exceeding 2.5 lakhs to file their return in India for the relevant assessment year.

My queries are as follows:

1. Is the assesse required to provide such details of foreign income, interests, bank accounts in response to the summons?;
2. Can the assessee state they are a Non-Resident for the period in question along with passport proofs and deny submitting the requested information?;
3. Will there be any further assessment by the officer if such information was denied on account of being Non-Resident?.

If there are any case laws on this matter, it would be much appreciated if they can be quoted in your reply.

Thanks in advance,

Samarth

AI Summary

NRI Receives Summons Under Section 131(1A) for Undisclosed Foreign Assets; Must Prove Non-Resident Status to Dismiss Notice. An individual sought advice regarding a summons under Section 131(1A) received by a Non-Resident Indian (NRI) for not disclosing financial interests in foreign bank accounts. The NRI, not required to file an income tax return in India due to income below 2.5 lakhs, was asked to submit details of foreign income and assets. The queries included whether the NRI must provide this information, if they can assert their non-resident status to deny the request, and the potential for further assessment. The response advised proving non-resident status to potentially have the notice dismissed.