TaxTMI 
TaxTMI 
2026 (8) TMI 46
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....erred in issuing notice u/s 10(1) of the The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 dated 15.03.2022, without appreciating that the said notice is barred by limitation as per the CBDT guidelines. 2. The Learned Assessing officer erred in assessing the alleged undisclosed foreign assets under The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in the year under consideration i.e AY 2022-23. 3. The Learned CIT(A) as well as the Learned Assessing officer has erred in bringing to tax an amount of Rs. 3,67,46,395/ on account of alleged undisclosed foreign assets, without considering the facts and circumstances of the case. 4. The Learned ....
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....fficer erred in not appreciating the factual aspects relating to the source, repayment, and permissibility of the transactions, including absence of any legal prohibition on such investments and failure to establish unexplained sources, thereby rendering the impugned order perverse, erroneous, and unsustainable in law. 9. The appellant craves leaves to add, amend, alter or delete the said ground of appeal. 3. Ground No. 1 of the revised grounds raised by the assessee relates to challenging the action of the AO in issuing notice under section 10(1) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, dated 15.03.2022, without appreciating that the said notice was barred by limitation as per ....
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....he assessee replied that he had sold the property at loss at the amount of AED 1,000,000 in November 2020 and amount received by sold property was repaid to Mr.Ghanem Al Aga, but the assessee has not submitted any bank transaction details and other documents relevant to the whole year in which purchase and sale transaction of the property in Dubai were carried out and payment to Mr Ghanem Al Aga was shown. 6. Based on above findings and submission, a final show cause dated 06/02/2024 was issued to assessee (copy attached as annexure)..." 5. It was further observed that notice under section 133(6) of the Act was issued to the assessee on 30.04.2019 by the DDIT, Mumbai, stating that the assessee had entered into a financial transaction ....
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....lly and truly all material facts necessary for his assessment, for that assessment year: A notice u/s 148 r.w.s 147 is, therefore, being issued to re-assess such income and also any other income chargeable to tax which has escaped assessment." 7. Moreover, the said position stands explicitly affirmed in the order passed under section 10(1) of the BM Act for AY 2022-23, wherein the AO himself has recorded that such disclosure was made only in the revised returns filed on 31.03.2021 in response to notices issued under section 148. The relevant portion of the order passed under section 10(1) of the BM Act for AY 2022-23, wherein, in para 3.2.2, the AO has held as under: "From perusal of the FA Schedule of ITR filed over the years, ....
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....deviation from this timeline must be supported by reasons recorded in writing and prior approval of the competent authority. 10. We further noticed that, as stated in the Guidelines, in order to achieve the intended objectives and to streamline action under the Black Money Act, the CBDT had issued the aforesaid Guidelines prescribing the processes and timelines with effect from 01.02.2018. The relevant portion thereof is reproduced herein below: "...8. Time limit for issuance of notice under section 10(1) of the BM Act: Though no statutory time limit for issuance of notice under section 10(1) is specified under the BM Act, wherever the conditions of para 6(a) to 6(c) above in respect of issuance of notice under section 10(1) are....
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....ereby rendering the entire proceedings procedurally flawed and legally untenable. 14. In view of the aforesaid discussion, we are of the considered view that the initiation of proceedings under section 10(1) of the BM Act is vitiated, being contrary to the binding administrative instructions, and is liable to be quashed. Reliance in this regard is being placed upon the decision of the Coordinate Bench of ITAT in the case of Sadanand B. Sule (BMA No. 4/Mum/2023), wherein the Bench took cognizance of the aforesaid Guidelines and held that the same are binding on the Revenue and that non-compliance therewith vitiates the entire proceedings. A similar issue also came up before the Hon'ble Delhi High Court in the case of Harvansh Chawla (....