9911796707
TMI Blog2025 (3) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Hence, the assessee could furnish only the information, which were available with him. Hence the explanations of the assessee, in our view, have to be appreciated duly keeping in mind the constraints that would be faced by the assessee in this kind of situation. Accordingly, this issue requires to be examined on the basis of best possible/available evidences. The object of BMA Act was to assess the income that was not subjected to tax in India and which has been stashed away abroad. If an assessee is holding any asset abroad out of the income already subjected to tax in India, then the BMA would not be applicable. Similarly, if the asset held abroad has been acquired out of the income earned there, which is not liable to taxed in India, then also the BMA Act will not apply. In the instant case, the sequence of events that have been narrated by the assessee would show that the bank accounts have been opened by the parents of the assessee and they were only operating the bank accounts during their life time. Deposits, which is sought to be taxed in the hands of the assessee have been made earlier to the year 2010. It included transfers from other bank accounts and in those bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein he admitted that he is having a bank account with Standard Chartered Bank in Jersey which is jointly held by him, his wife and his son. He also admitted that the balance lying in that account is approximately 200000 USD. However, he said that the relevant details are not readily available with him. 3. With regard to the sources, he submitted that his father was doing business in Sudan and he opened a bank account in UK in which his father had deposited his earnings from the business. Upon his death in 1984, the bank account was transferred to his mother"s name and later his name was also included by his mother. Later on, the above said bank account was shifted to Standard Chartered Bank, Jersey. Subsequently, the name of his wife and son were included in the year 2008. After the death of his mother in the year 2017, he became the beneficial owner of the bank. He admitted that the interest income arising from the above said bank account was also not offered in his return of income and agreed to offer the same. It is pertinent to note that the assessee was allowed to contact the bank during the course of survey operation. However, the bank official informed that the bank accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BMA proceedings should not be taken against him and further the sources of deposits have been duly explained, i.e., it was inherited by him from his father/mother. The assessee also furnished copies of passport entries of his mother to show that she has travelled to Sudan, Australia, USA, UK, Singapore, Mauritius etc. He submitted that her mother had visited Sudan and stayed there for 22 days in order to settle all the pending matters. He also submitted that his elder brother was born in Sudan in 1950, which fact proves that his parents have resided in Sudan during that point of time. The assessee also furnished copies of KYC documents given to the bank, wherein the address in Sudan was found mentioned. The assessee also relied upon a copy of internal information (a note prepared by one of the bank staffs) of the bank, which was furnished by the AO to him. In that note, the conversation between the assessee and a official has been communicated by that official to another official. It reads as under:- "...He was wondering why I was asking him details on his family background. He felt that he has had the account for the past 40 years and why does the bank need this information now. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re having following bank accounts:- (a) In the name of Assessee and his mother Smt Manjula Jethalal Modi:-1010730702 and 1010145656; (b) In the name of Assessee, his wife (Dipti N Modi) and Son (Aditya N Modi):-1010787488 and 1010787089 The assessee explained that funds have been transferred between the bank accounts and the actual amount of deposits found to have been made was only 241085.33 USD equivalent to Rs. 1,56,75,368/-. The AO has also accepted the same. Thus, the fact that the deposits were initially available in the bank accounts held in the joint name of the assessee and his mother was accepted. Further, the fact that those deposits were transferred to the bank account held jointly by assessee, his wife and his son was also accepted. The said bank accounts included the Account No.1010787089, wherein the deposit of 241085.33 USD equivalent to Rs. 1,56,75,368/- was found. i.e., the above said amount included the deposits transferred from other bank accounts also. The details of deposits are as given below:- 12-11-2008 - 1,15,000.00 30-07-2010 - 1,21,517.58 03-08-2010 - 4,567.75 Interest credit - 1,831.10 Total 2,41,085.33 The assessee has expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard Chartered bank, which were in the joint name of my father and my mother. This was given to understand to me by my mother. During this period, my father and mother were non-resident Indians. They have not kept any documents with us. In the early 1960s, my father returned back to India after winding up his business and the bank accounts in London were still operational being his savings out of his eamings abroad. After the death of my father in the year 1984, at the instance of my mother, I was added as the joint holder of the bank accounts along with my mother, by way of inheritance. Later in the years, the management of the Natwest bank and Standard Chartered bank in London declared these accounts as dormant accounts since there were no activities/fransactions of withdrawals and deposits in the said bank accounts for last several years. Hence, on the Instructions of the banks, the bank accounts were transferred to Jersey branch of Standard Chartered bank and in the said new account my name was added. The funds from the two bank accounts in London were remitted to Standard Chartered bank account in Jersey and thereafter the bank accounts in London were closed. In the year ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es that the basic requirement of section 2(11) to consider an asset as foreign asset located outside India is not met. Hence, the bank accounts in Jersey are not undisclosed foreign asset located outside India as per the provisions of section 2(11) of the BMA. Therefore, at the foremost, I vehemently submit that the provisions of section 3 of the BMA are not applicable since there is no undisclosed foreign income and/or asset outside India as I have clearly explained the source of investment in these bank accounts. In view of this, the proceeding, initiated u/s 10(1) of the BMA are void ab initio and need to be dropped." 11. We noticed that the assessee has stated that his father has opened the bank account in UK, when he was doing business in Sudan. (a) The fact that the parents were residing in Sudan is proved by the fact that his elder brother was born in Sudan. (b) Further, the copy of passport of her mother would show that she travelled to Sudan after the death of her husband and stayed there for 22 days. According to the assessee, she had gone there to settle all the pending issues. Further, the fact that she has travelled various countries would show that she was managi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
