9911796707
TMI Blog2020 (6) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... 30 days. 2. According to the petitioner, he was a Non Resident Indian employed abroad as a Bank Professional and investments made by the petitioner from such income, was not liable to any tax in India. After having attained retirement, he returned to India and filed his income tax return for the assessment year 2016- 17 declaring the total income of Rs. 46,81,590/-. In the meanwhile, the Government of India introduced the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015 (hereinafter referred to as 'Black Money Act'). Petitioner was under the bonafide belief that disclosure under Schedule FA was to be made only from the assessment year 2017- 18, subsequently was advised even for the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not bound by the Circular, being only directive in nature. 4. The Rule making authority cannot override or go beyond the provisions of the Act or the spirit of the law. The preamble of the Black Money Act aims at only to curb the menace of black money. It was next contended that the exclusive order under Section 43 of the Act ibid cannot be imposed without there being an assessment on the revised returns. It is no case of any nondisclosure of assets or accumulation of any black money, therefore, the alleged reasoning regarding nondisclosure is without any foundation or basis. Section 43 of the Black Money Act can only apply to the assets which are in the nature of black money or assets for which there is no explanation as to the source. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee had not committed an intentional error by bonafide or inadvertent, in other words, there was no willful intention, thus, penalty cannot be imposed. 7. I have heard learned Counsel for the parties and appraised the paper book and as well the provisions of law, referred to above. I am of the view there is no force or merit in the submission. 8. The aforementioned Black Money Act came into force in the year 2016, whereas the charging Section 3, which is extracted herein below came into force after April, 2016 specifying the charging of the tax on every assessee for every assessment year, post 1st April 2016. "Section 3 Charge of tax (1) There shall be charged on every assessee for every assessment year commencing on or after the 1s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any proceedings initiated under Section 43 of the Act, which is reproduced below, which empowers the tax officer to initiate proceedings of imposition of penalty on account of failure to furnish any incorrect particulars about the asset including financial interest in any entity located outside India. "Section 43 Penalty for failure to furnish in return of income, an information or furnish inaccurate particulars about an asset (including financial interest I any entity) located outside India. - If any person, being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income Tax Act, who has furnished the return of income for any previous year under sub-section (1) or sub-section (4) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h return relating to any asset (including financial interest in any entity) located outside India, held by him as a beneficial owner or otherwise, or in respect of which he was a beneficiary; or relating to any income from a source located outside India, at any time during such previous year, the Assessing Officer may direct that such person shall pay a penalty often lakh rupees. The said clause further provides that no penalty shall be levied in respect of an asset, being one or more bank accounts having an aggregate balance which does not exceed a value equivalent to five hundred thousand rupees at any time during the previous year." 12. No doubt the Circular has no binding force and therefore, the challenge to the circular cannot be a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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