Foreign Bank Accounts Inherited from Parents Not Subject to Black Money Act as Funds Originated Abroad

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Full Text of the Document

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....The ITAT allowed the assessee's appeal against additions made under the Black Money Act regarding foreign bank accounts. The Tribunal found that the accounts were opened and operated by the assessee's parents during their lifetime, with deposits made prior to 2010. Evidence confirmed the father conducted business in Sudan under the trade name "BABU" and the mother independently managed financial affairs as shown by passport entries. The ITAT recognized the inherent difficulty for the assessee to provide complete documentation for transactions managed by deceased parents. Since the deposits originated from income earned abroad by the parents, not from undisclosed Indian income, the Tribunal concluded the Black Money Act was inapplicable and directed deletion of the additions.....