TaxTMI 
TaxTMI 
2025 (10) TMI 1471
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....sment Year 2022-23. 2. Grounds of appeal raised by the assessee are as under: 1. That the Order u/s 15(1) of the Ld. Appellate Commissioner, Chennai -18 is erroneous on the facts and the merits of the case and provisions of Law as well and hence requires to be quashed. 2. That the Ld. CIT(A) erred in ignoring the legal ground that when an incorrect assessment year was reopened under the BMI Act, the consequential order passed is invalid. 3. That the Ld. CIT(A) erred in ignoring the legal ground that in the absence of any asset identified to be undisclosed or that such asset was acquired out of income chargeable to tax in India, the order passed u/s 10(3) is void. 4. That the Ld. CIT(A) erred in failing....
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....7,539/-. Aggrieved, the assessee is in further appeal before us. 5. The Ld. Counsel for the assessee submitted the BM Act applies only where there exists an undisclosed asset located outside India or income chargeable to tax in India that remains undisclosed. In the present case, no foreign asset was identified, nor was any income chargeable to tax in India undisclosed. He further submitted that salary earned in Norway for services rendered in Norway is taxable only in Norway as per Article 16 of the India-Norway DTAA. The Assessing Officer (AO) erroneously invoked the BM Act for A.Y. 2022-23, although the alleged income pertains to A.Y. 2016-17. Section 3(1) proviso applies only to undisclosed assets, not to income, and therefore invoki....
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....quently, such income is exempt from tax in India by virtue of section 90(2) of the Income Tax Act read with the DTAA. Therefore, there is no chargeable income in India which could form the basis of any addition, either under the Income Tax Act or the BM Act. Issue (ii): Applicability of the BM Act Section 2(11) of the BM Act defines "undisclosed asset located outside India" and section 2(12) defines "undisclosed foreign income and asset." Both require that the income or asset be undisclosed and chargeable to tax in India. In the instant case, the alleged amount is neither an "asset" located outside India nor income chargeable to tax in India. The AO has not identified any undisclosed foreign bank account, investment, or property. Mere....