https://www.taxtmi.com/caselaws?id=458174 ITAT Mumbai held that offshore trust assets and bank account credits of an independent company incorporated outside India cannot be taxed in the hands of a resident Indian trustee. The tribunal ruled that mere declaration as beneficial owner for anti-money laundering purposes does not establish ownership. The AO failed to prove the assessee contributed to the trust corpus or received any benefits. Additions under sections 56, 68, and 69 were deleted as the assessee acted only as trustee holding shares in nominee capacity. The appeal was allowed, establishing that offshore entities are taxable in their respective jurisdictions, not in India. en-us Mon, 03 Jan 2022 00:00:00 +0530 Sat, 12 Oct 2024 08:36:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458174 ITAT Mumbai held that offshore trust assets and bank account credits of an independent company incorporated outside India cannot be taxed in the hands of a resident Indian trustee. The tribunal ruled that mere declaration as beneficial owner for anti-money laundering purposes does not establish ownership. The AO failed to prove the assessee contributed to the trust corpus or received any benefits. Additions under sections 56, 68, and 69 were deleted as the assessee acted only as trustee holding shares in nominee capacity. The appeal was allowed, establishing that offshore entities are taxable in their respective jurisdictions, not in India. Case-Laws Income Tax Mon, 03 Jan 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458174