2026 (2) TMI 248

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.... Foreign Income & Assets) and Imposition of Tax Act, 2015 [BMA] in the case of Shri Ullal Kojabba Monu wherein the addition of undisclosed foreign assets of Rs. 1,07,73,416 imposed by the ld. AO u/s. 10(3) of the BMA as per order dated 3.7.2024 was allowed. 2. The ld. CIT(A) has deleted the addition in the hands of the assessee as undisclosed foreign assets and therefore the ld. AO is in appeal before us. 3. The brief facts of the case show that search was conducted in the case of Kanachur Islamic Education Trust, Mangalore on 17 February 2021. The assessee is the chairman of the trust and stated that in his individual capacity investment of 1 lakh Singapore US dollar was made in Koju Global PTE Ltd., Singapore. From the email seized ....

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....edings were initiated for assessment year 2014 - 15 to 2022 - 23 and therefore there is no violation of the provisions of the Black Money Act. 4. The ld. AO was of the view that assessee has failed to consider the provisions of section 72C of the Act and has proceeded to pass the impugned order by calculating the undisclosed foreign fair market value of the assets at Rs. 1,38,37,876 in Koju Global PTE Ltd., Singapore. Accordingly the assessment order was passed on 3 July 2024 wherein the above sum was charged to tax. Thus the ld. AO held that fair market value of the assets in undisclosed foreign assets with respect to Koju Global PTE Ltd., Singapore is Rs. 1,38,37,876/- and investment in Koju Trading Co. LLC Dubai is Rs. 2,935,590/-. ....

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....ut ascertaining the same. It was also not verified by the appellate authority about relationship as well as the sources of funds of relatives. 7. The ld. DR vehemently submitted that that while deleting the addition of Koju Trading Co. LLC Dubai, the ld. CIT-A has considered that the source of investment in the above company was made from the borrowing of 1,47,000 Dirhams from his NRI relative, Mr. Abdul Rahiman Madeena. The ld. CIT-A also considered that the loan amounts so borrowed was recorded in its books of accounts under investment for shares and under sundry creditors for the loan borrowed. Based on these evidences the ld. CIT-A has deleted the addition. Ld. DR submitted that how the assessee borrowed from Mr. A R Madeena and how ....

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....urther an investment of one lakh Singapore dollars in Koju Global PTE Ltd., Singapore. The first investment was made in 2004 and second investment was made in 2008. The above details were found in view of the search proceedings and the post search investigation carried out by the income tax department. These investments were not at all disclosed in the schedule FA of the return of income filed by the assessee. Accordingly the notices were issued and the additions were made. 11. During the course of assessment proceedings the assessee explained that with respect to investment in Koju Trading Co. LLC Dubai has been compounded by Reserve Bank of India and appropriate penalty of the same was levied in the year 2009. The Koju Trading Co. LLC ....