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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 ..... t during seven years of his and his wife s employment in the United Kingdom, the assessee had accumulated funds, on which taxes were duly paid in the UK, which were parked in a bank account in British Virgin Islands. It was also explained that these monies were kept in BVI bank account since, in accordance with the legal requirements then in existence, they could not have kept these monies in the UK. Once this position is found to be correct, the taxation will no doubt be confined to the accretion part but that stage has not yet come. As for the impact of Pratibha Pankaj Patel [ 2018 (12) TMI 272 - ITAT AHMEDABAD ] on the facts of this case, that was a case in which the assessee before us was only a beneficiary and not the settlor. So far a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondent : Mr Alok Singh and Mudit Nagpal ORDER Per Pramod Kumar, VP: 1. These four appeals involve a common issue, arise out of materially similar facts as the appellants are beneficiary of the same trust, and were heard together. As a matter of convenience, therefore, all the four appeals are being disposed of 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 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucture, by the same name, which was settled on 4th November 1981 by Barclaystrust International Limited, BVI. None of these investments were however, apparently, accounted for at any stage or disclosed to the tax authorities. As per the information on record, as on 19 October 2011, the balance in capital account 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 benefi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the question of differentiating between the trust corpus and accretion of income could be relevant only when the source of corpus stands explained. It is submitted that there is nothing on record to show that the source of funds in the hands of the trust stands explained. He thus submits that the first thing 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 so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he income component, and but that would not essentially hold good for the settlor as well. He has to explain the investments, which were not accounted for in his books of accounts or disclosed to the income tax authorities at any stage earlier, detected during the search operations. There is no escape from 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 conscio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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