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2022 (4) TMI 1199 - HC - Income TaxBlack money - Punishment for failure to furnish in return of income, any information about an asset (including financial interest in any entity) located outside India - complaint under Section 50 of the BMI Act against the petitioner/accused, alleging that he has not disclosed about his financial interest in the bank accounts held by him with the ‘Investec Bank’ (Channel Island) Limited” in its Jersey Branch for the ITR filed by him for the assessment year 2016-17 - contention of petitioner is that the petitioner was a minor at the time of investment i.e. only about two-three years and the petitioner’s grandfather made investment in the said company/trust - HELD THAT:- Even assuming the allegations of the complainant to be true, the petitioner was required to disclose the said details in the ITR, as the account was opened in the year 2015 on 25.05.2015 (Financial Year 2014-15) i.e. assessment year 2015-16. Further as per definition of ‘Previous Year’ under Section 2 (9) of the BMI Act, there was no requirement, at that stage to disclose the same. Further, it has also been contended that petitioner was not benefitted by any benefit and has not received even a single penny. Reference was also made to the provisos to Section 139 along with explanation 4 and 5 of the Income Tax Act. It is contended that the petitioner, on being nominated as beneficiary, an expectancy or anticipation of hope of distribution in his favor, existed and nothing more and Revenue authorities are yet to quantify the assets and/or income received from such assets under assessment proceedings Under Section 10 of BMI Act. The contentions raised by counsel for petitioner appear to be forceful and carry merit subject to the reply to be filed on behalf of respondent. Considering the aforesaid aspects and in the totality of the facts and circumstances, it is directed that the proceedings before the learned trial court shall be subject to the final orders passed in the present petition. However we not inclined to stay the proceedings before the learned ACMM, at this stage and an opportunity is granted to the respondent to file a reply on merits as well as on the point of grant of sanction under Section 55 of BMI Act. Reply be filed on behalf of the respondent within 04 (four) weeks with advance copy to learned counsel for the petitioner. Counsel for petitioner has vehemently prayed that petitioner be granted exemption from appearance before learned Trial Court in case the proceedings are not stayed, since the petitioner is a student undertaking studies at Harvard Kennedy School, John F. Kennedy School at USA. The proceedings initiated on complaint are based primarily upon documents and identity of petitioner is not disputed. Exemption if granted shall not prejudice the complainant in any manner. Learned ACMM may consider granting an exemption from personal appearance to the petitioner through Authorized Representative in accordance with law, in case an appropriate application in this regard is moved before the learned ACMM.
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