TaxTMI 
TaxTMI 
2026 (8) TMI 467
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....nferred. to make the assessment under the Income Tax Act r/w section 6(3) of Black Money (UFIA) &Imposition of Tax Act 2015. 03. That the assessment framed by the Ld. DDIT is time barred as the information was received during the FY 2017-18 whereas the assessment is framed on 31.03.2021. Hence, the same is liable to be set aside. 04. That the assessment framed by the Ld. DDIT though allegedly stated to be passed on 31.03.2021, was never served during the FY 2021-22. Hence, it is evident that the same was not passed on 31.03.2021 and therefore, is time barred. 05. That the ld. DDIT has erred in treating the amount of Rs. 40,03,212,78 received by the appellant on maturity of his life insurance policy as his undisclosed foreign asset so as to invoke provisions of section 10(3) of the Black Money (UFIA) & Imposition of Tax Act 2015. 06. That the life insurance policy was purchased by the appellant put of his disclosed tax paid income when he was non-resident and thereafter, he continued to payout of his disclosed tax paid salary income in India. Hence, it was not the "undisclosed foreign asset located outside India" within the meaning of section 2(11....
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....a. While in Dubai, assessee paid the premium out of this non-taxable income. The assessee returned to India in July 2007 and started working with Pathways World School, Gurugram as School Director. He retired from the employment in December 2020.After returning from Dubai, assessee continued to pay premium on the policy officially through his savings bank account following the Government of India rules for foreign exchange transmissions, initially through Citi Bank and subsequently through HDFC Bank. Since AY 2008-09, the assessee was regularly filing his return of income in India. For the year under consideration i.e. AY 2017-18, assessee filed the return declaring income at Rs. 86,09,880/- being a salary income on which tax of Rs. 24,72,453/- was deducted at source. Assessee also paid Rs. 2,600/- by way of self-assessment tax. In return of income, assessee did not declare this maturity amount of Rs. 35,25,453.18 as income for the reason that it is exempt u/s 10(10D) of the Income-tax Act, 1961 (for short 'the Act') and that the premiums were paid out of tax paid salary income. 3. During assessment proceedings under BMA, the Assessing Officer held that on conjoint reading of se....
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....wenty-five lakh rupees on his salary income and there was no malafide intention on his part not to disclose the maturity amount in the income tax return. However, the Assessing Officer did not convince with the same and read down the provisions of section 2(28BB) with section 10(10D) of the Act and came to the conclusion that the maturity amount was not exempt u/s 10(10D) of the Income Tax Act. He invoked the provisions of section 4(a) of the Black Money Act and treated the amount of Rs. 40,03,212.78 as undisclosed foreign income of the assessee, liable to tax. She submitted that the Assessing Officer has wrongly read the provisions of section 2(28BB) into section 10(10D) as section 10(10D) does not use any term "insurer". It simply says: "any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy". 7. She submitted that certain exceptions have been carved out from the main provision, however the case of the assessee does not fall within it. Hence, the maturity amount received by the assessee under a life insurance policy is exempt u/s 10(10D) of the Act. Further, the premium was paid by the assessee from his tax paid inco....
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....r the Income Tax Act for any assessment year prior to assessment year 2016-17: i) for which he has failed to furnish a return u/s 139 of the Income Tax Act, ii) which he has failed to disclose in a return of income furnished by him under the Income Tax Act before the date of commencement of Black Money Act; and iii) which has escaped assessment by reason of omission or failure on the part of such person to make a return under the Income Tax Act or to disclose fully and truly all material facts necessary for the assessment or otherwise. 9. She submitted that none of these provisions are applicable to the present case. There are twin primary conditions - i) undisclosed asset located outside India and ii) acquired from income chargeable to tax under the Income Tax Act. None of these conditions are satisfied. As stated in the preceding paras, it is not undisclosed asset located outside India and it was not acquired from income chargeable to tax in India for which no return has been filed or if filed, no tax is paid. The first two premiums were paid by the assessee out of salary in Dubai which was not chargeable to tax in India and the subsequent premiums w....
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....estions, government has clarified that the assets acquired by the assessee out of income which was not chargeable to tax in India are not required to be declared under Chapter-VI of the Act. Further she submitted that again government has clarified the position vide Question No.32. Question No.32 - A person was employed in a foreign country where he acquired or made an asset out of income earned in that country. Whether such asset is required to be declared under Chapter VI of the Act? Answer - If the person, while he was a non-resident in India, acquired or made a foreign asset out of income which is not chargeable to tax in India, such asset shall not be an undisclosed asset under the Act. However, if income was accrued or received in India while he was non-resident, such income is chargeable to tax in India. If such income was not disclosed in the return of income and the foreign asset was acquired from such income then the asset becomes undisclosed foreign asset and the person may declare such asset under Chapter VI of the Act." She submitted that according to the above said questions and its answers, the assessee was not required to declare his LIC Policy ....