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TMI Blog2019 (8) TMI 837X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of this common order. 2. The appeals are time barred by 404 days but the assessee appellants have moved petitions seeking condonation of delay. The delay is said to be attributed to the carelessness of the accountant who kept the impugned orders in his drawers but took no further action, as was indeed required, on the same. This person was said to be suffering from tuberculosis and it was in his absence that the papers in his drawers were checked and this lapse was detected. The assessee thereafter took the immediate remedial measures and the appeals were filed. The delay is claimed to be bonafide and for the reasons beyond control of the assessee appellant. Learned Departmental Representatives, on the other hand, urged us to reje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of the trust was GBP 3,32,418.70 and income account was GBP 59,733.65. The information also revealed that on 1st June 2006 and 29th January 2008, Dr A T Patel received GBP 5,000 and GBP 3,050 respectively from the trust, and on 13th February 2008 and 6th June 2011, Mrs VU Patel received GBP 8,000 and GBP 9,000 respectively from the said trust. Finally, this Trust was terminated on 16 July 2013, and the amounts received by the beneficiaries were offered to tax. In the course of the assessment proceedings, however, the Assessing Officer also brought to tax partial withdrawals to tax, as income of the beneficiary withdrawing the money, and also proceeded to impose penalty under section 271(1)(c) in respect of income on account of such wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to be examined is whether or not the source of funds in the hands of the trust stand explained or not. We are thus urged to remit the matter to the file of the Assessing Officer for examining the matter afresh without any fetters attached. Learned Sr counsel, in his brief rejoinder, submits that he has no objection to the matter being remitted to the file of the Assessing Officer for fresh examination, including on the aspect of the source of funds. 5. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. 6. We find that this is a case in which the existence of the private discretionary trust held in a tax haven jurisdiction, i.e. Briti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the onus of explaining the investments made by the assessee. The trust investments were made much earlier but since these investments were unaccounted and undisclosed, the assessee has to explain the source of these investments now. When the investment in trust itself stands unexplained and uncorroborated, the legal position with respect to taxability of such trust funds is altogether at a different level. As we so observe, we are conscious of the fact that the evidence of trust investments is found in the search proceedings and these investments in the trust were prima facie unaccounted and undisclosed to the tax authorities. Learned representatives fairly agree that the matter can be remitted to the file of the Assessing Officer for ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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