9911796707
TMI Blog2023 (7) TMI 1560X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned against assessee's own name is not accurate. Instead of Rs. 5,50,44,320/-, the assessee has disclosed investment of Rs. 3,91,04,805/- only. Thus, there is furnishing of inaccurate particulars of investments in assessee's own name and non-reporting of investments in the name of children. The assessee has contended that non-reporting is a bonafide mistake, nevertheless, it is unsubstantiated. The contention of assessee is that investments have been made from source of funds duly accounted in books and no black money is involved for the purpose of making investments overseas. The said contention of assessee may be true, but penalty u/s 43 of BMA is levied for non-reporting of overseas investments and not for making investments fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in Mauritius. The assessee had made investments in offshore fund in his own name and in the name of his children viz. Ms. Harshita Nirmal Jain (Daughter), Ms. Kalpita Nirmal Jain (minor Daughter) and Mst. Bhavya Nirmal Jain (minor son). The Investments have been made out of the income duly accounted in the books of assessee and the said income has been duly reflected in the return of income for the AY 2016-17. While filing return of income in Schedule FA, the assessee has disclosed investments made in assessee's own name. However, the investments made in the name of children inadvertently remained to be disclosed. The ld. AR fairly stated that there was an incremental increase in investments in GDOF during the period relevant to the AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not the case of assessee that a separate return of income for the impugned AY in the name of children are filed and disclosure of overseas investments is made therein. The assessee has made investments in GDOF. The details of the investments made by the assessee over the period of time including investments made during the previous year are as under: Investors Name Amount (in Rs.) Nirmal Jain (Assessee) 5,50,44,320 Harshita Jain (Daughter) 5,59,75,000 Kalpita Jain (minor Daughter) 5,06,75,000 Bhavya Jain (minor son) 5,53,75,000 Total Investment during the year 21,70,69,320 Amount reported in Schedule FA of Return of Income 3,91,04,805 The of contention of assessee is that the investments have been made out of funds duly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to section 42." 6. A perusal of the provisions of section 43 would show that where the assessee in his return of income filed under section 139(1) or 139(4) or 139(5) fails to furnish information or furnish inaccurate particulars of investments outside India, the assessee is liable for penalty under the said section. The BMA was introduced with the intent of curbing stashing away of black money abroad, it was consequent to introduction of BMA that an amendment was made under the provisions of Income Tax Act, 1961 to enable the assessee to report foreign investments directly held in the name of assessee or where they are beneficial owner or are in any way beneficiary to any assets or income from source located outside India. It is mand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reading of section leaves no scope of gateway to delete penalty even if overseas investments are made from known sources, but not reported in Schedule FA of return of income. 8. Taking into consideration entirety of facts and the provisions of section 43 of BMA, we find no infirmity in the impugned order. The assessee has placed reliance on the decision in the case of Leena Gandhi Tiwari (supra), we find that the facts in the aforesaid case are distinguishable, hence, the said case does not support the cause of assessee. 9. In the result, impugned order is upheld and appeal of the assessee is dismissed. BMA No. 14/Mum/2023 for AY 2017-18 BMA No. 15/Mum/2023 for AY 2018-19 10. Both sides are unanimous in stating that the facts in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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