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TMI Blog2023 (4) TMI 1403X X X X Extracts X X X X X X X X Extracts X X X X ..... 60% of the total value of the foreign asset under One Time Compliance Scheme of the Act. CIT (A) deleted the penalty levied u/s. 43 of the Act by Assessing Officer by placing reliance on the decision of Tribunal in the case of Leena Gandhi Tiwari [2022 (6) TMI 1191 - ITAT MUMBAI] As undisputed fact that by the end of F.Y. 2015-16 the foreign asset ceases to exists as the assessee surrendered the said policy and the maturity amount of policy was duly reflected in Income Tax Return. Bonafide mistake in not disclosing foreign asset in Schedule -FA of the Income Tax Return is a reasonable cause for deleting penalty in the given circumstances. Furnishing of inaccurate particulars about asset located outside India cannot be imputed as the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Addl.CIT vs. Leena Gandhi Tiwari in BMA No. 1/Mum/2022 decided on 29/03/2022. The ld. Departmental Representative submitted that the CIT (A) failed to take note of Circular No. 13 of 2015 dated 06/07/2015, wherein the Board has clarified while answering Question No. 18 that disclosure of foreign asset in Schedule -FA in return of income is mandatory. Question No. 18 of the said Circular specifically deals with the non-reporting of the assets in Schedule -FA of the Income-tax return. In a categoric answer to the said question, the Board has clarified that if the foreign assets are not reported in Schedule -FA of the return of income for assessment year 2016-17 or in any subsequent assessment years by a person being the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turity value of insurance policy under the head "exempt income". He further submitted that non-disclosure of insurance policy in Schedule-FA was out of bonafide belief that the insurance policy has since been surrendered and it is no more in existence, there is no requirement to disclose in Schedule -FA. He contended that once the assessee has made declaration in accordance with the scheme under the Act and the said declaration being accepted, tax and penalty paid no further penalty should be levied for merely non-mentioning of foreign Life Insurance Policy in Schedule - FA. In support of his submissions, the Ld.Counsel for the assessee placed reliance on the following decisions: (i) Pranit Kirthikant Nanavati vs. ACIT in ITA No. 227 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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