TaxTMI 
TaxTMI 
TaxTMI 
2022 (4) TMI 1199
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....ngs in Complaint Case No. 1964/2021 filed by the respondent before the learned ACMM, Special Acts, Central District, Tis Hazari Courts. Apart from relying upon the contentions raised in the present petition filed under Section 482 of Cr.P.C., it has also been mentioned that this court in W.P.(C) No. 142/2020 vide order dated 04.08.2021 as well as in LPA no. 236/2021 vide order dated 09.08.2021, permitted the petitioner to travel to USA for a Masters course in Public Administration (MPA) at the Harvard Kennedy School, John F. Kennedy School of Government, Cambridge, Massachusetts, United States of America (USA). It is also prayed by the counsel that in case this Court is not inclined to stay the proceedings, petitioner may be granted exemption from appearance since he is continuing his studies in USA. 3. The application for stay of proceedings pending before the learned ACMM has been vehemently opposed on behalf of respondent and time has been sought to file reply. 4. In brief, a complaint under Section 50 of the BMI Act was filed for assessment year 2016-17 against the petitioner/accused, alleging that he has not disclosed about his financial interest in the bank accounts held by....
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....el for the petitioner that the sanction order dated 12.07.2021 passed under Section 55 of the BMI Act for initiating prosecution of the petitioner is bad in law and not a valid sanction order, as the same is not in terms of Section 55 of the Act. The present proceedings are stated to be coercive for causing harassment to the petitioner. 11. It is next submitted that the assessment proceedings under Section 10 of the BMI Act against the petitioner is pending and the authorities are yet to crystallize and quantify the assets and/ or income received from such assets as the petitioner has not received any income or any benefit therefrom. 12. The proceedings before the learned ACMM is stated to be premature and an abuse of process of law. It is further contended that even the assessment proceedings completed by respondent under the Income Tax Act, 1961 did not find any adverse findings against the petitioner. Further, it is the requirement that before initiating any prosecution proceedings, one needs to satisfy that there are undisclosed assets located outside India as per the definition of Section 2(11) of the Income Tax Act. It is further pointed out that the mandate granted under S....
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....e assessee has not received the said income; and (iii) the assessee has not shown as taxable income in the returns of all the years under appeal. Having observed the above distinguishing features, the High Court was also of the view that on interpretation of the relevant clauses of the deeds of settlement executed in U.K., character of the trusts appears to be discretionary and not specific. 13. A discretionary trust is one which gives a beneficiary no right to any part of the income of the trust property, but vests in the trustees a discretionary power to pay him, or apply for his benefit, such part of the income as they think fit. The trustees must exercise their discretion as and when the income becomes available, but if they fail to distribute in due time, the power is not extinguished so that they can distribute later. They have no power to bind themselves for the future. The beneficiary thus has no more than a hope that the discretion will be exercised in his favour." 16. It is also contended that the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 has introduced a tax compliance provision under Chapter VI of the Act and the Black Mo....
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....ry/proceeding under the Income-tax Act. After the person has filed a declaration, which is to be filed latest by 30th September, 2015, he will be issued intimation by the Principal Commissioner/Commissioner by 31th October, 2015, whether any information has been received by the Government and consequently whether he is eligible to make the payment on the declaration made. If no information has been received up to 30th June, 2015 by the Government in respect of such asset the person will be allowed a time upto 31st December, 2015 for payment of tax and penalty in respect of the declared asset. There may be a case where person makes declaration in respect of 5 assets whereas the Government has information about only 1 asset. In such situation the person will be eligible to declare the balance 4 assets under Chapter VI of the Act. In such case the declarant, on receipt of intimation by the Principal Commissioner/Commissioner, shall revise the declaration made within 15 days of such receipt of intimation to exclude the asset which is not eligible for declaration. Tax and penalty on the eligible assets under the Act shall be payable in respect of the revised declaration by 31st of Decem....
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.... the meaning of clause 6 of Section 6 of Income Tax Act. b. Such person has furnished the Return of Income for any previous year under sub section (1) or sub section (4) or sub section (5) of section 139. c. Willfully fails to furnish in such return any information relating to an asset (including financial interest in an entity) located outside India, d. Held by such person, as a beneficial owner or otherwise or in which he is a beneficiary, at any time during such previous year." 21. The contention of learned counsel for the petitioner is that the petitioner was a minor at the time of investment i.e. only about two-three years and the petitioner's grandfather made investment in the said company/trust. Further even assuming the allegations of the complainant to be true, the petitioner was required to disclose the said details in the ITR, as the account was opened in the year 2015 on 25.05.2015 (Financial Year 2014-15) i.e. assessment year 2015-16. Further as per definition of 'Previous Year' under Section 2 (9) of the BMI Act, there was no requirement, at that stage to disclose the same. Further, it has also been contended that petitioner was not benefitted by any benefit an....