TaxTMI 
TaxTMI 
2024 (1) TMI 1446
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....einafter referred to as the CIT(A)] in the proceedings under section 17 of Black Money [Undisclosed Foreign Income and Assets (UFIA)] and Imposition of Tax Act, 2015 (in short BMA) confirming the penalty of Rs.10,00,000/- by the Assessing Officer (AO) under section 43 of BMA on the grounds inter-alia that :- "1. The source of funds for making the above investments is the income and capital of the appellant's father. 2. As such, the entire investment in Global Dynamic Opportunities Fund Ltd has been made out of funds on which applicable taxes have been paid. The said investment has not been done out of black money or unaccounted funds 3. The appellant has filed her return of income in respect of AY 20172018 u/s....
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..... Briefly stated facts necessary for consideration and adjudication of the issues at hand are : on the basis of information received by Deputy Director of Income Tax (Investigation) [DDIT (Inv.)], unit-8(2), Mumbai that assessee had foreign investment in the Global Dynamic Opportunities Fund, Mauritius to the tune of Rs.7,28,80,000/- which she had not disclosed in Schedule FA of her return of income for the A.Y. 2017-18. Declining the contentions raised by the assessee the AO proceeded to initiate the penalty proceedings under section 43 of the BMA for violating the mandatory provision for disclosure of foreign assets in Schedule FA of the return of income. Declining the contentions raised by the assessee the AO proceeded to levy the penalt....
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....has been made from the disclosed tax paid funds of Shri Nirmal Jain and there is no element of black money in the same. 6. We have perused the return of income filed by the assessee for the year under consideration available at page 3 to 23 of the paper book wherein the assessee has duly disclosed investment of Rs.1,67,05,000/- in Schedule FA at page 21 of the paper book. So out of the total investment in the name of the assessee to the tune of Rs.72,68,00,000/- the assessee has duly disclosed her foreign investment of Rs.1,67,05,000/- in Global Dynamic Opportunities Fund, Mauritius. 7. So far as remaining investment of Rs.5,59,75,000/- is concerned, the Ld. A.R. for the assessee contended that mere non disclosure of foreign assets in....
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....period of time including investments made during the previous year are as under: Investors Name Amount (in Rs.) Nirmal Jain (Assessee) 5,50,44,320 Harshita Jain (Daughter) 5,59,75,000 Kalpita Jain (minor Daughter) 5,06,75,000 Bhavya Jain (minor son) 5,53,75,000 Total Investment during the year 21,70,69,320 Amount reported in Schedule FA of Return of Income 3,91,04,805 9. When it is undisputed fact on record that the amount of Rs.5,59,75,000/- was invested by Shri Nirmal Jain in the name of the assessee, who under bonafide belief has not disclosed in Schedule FA of her return of income, no malafide can be attributed to the assessee and levy of penalty by the AO is not justified. Identical issue ha....