9911796707
TMI Blog2025 (5) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... 45,63,281.5/- and payment of dividend income of Rs. 2,58,836/- was reported. The assessee had not disclosed said foreign asset/ financial interest in the return of income for AY 2016-17. Therefore, the AO issued notice u/s.10(1) of Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 to the assessee on 16.02.2021. The assessee responded to the notice and filed requisite details vide letter dated 27.01.2022. The AO on perusal of details noted that assessee has received dividend income of Rs. 1,44,168/- from Vedanta Resources Plc on 28.08.2015, though received in India, the income bears the character of foreign income, which was not disclosed by the assessee in the return of income for AY 2016-17. Therefore, the AO completed the assessment by making addition of Rs. 1,44,618/- under the provisions of Black Money (Undisclosed Foreign Income & Assets) and Imposition of Tax Act 2015. 3. The ld. counsel for the assessee submitted as under:- On 07.01.2019, the Appellant received a notice under Section 10(1) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 ("Black Money Act") from Deputy Director of Income Tax (Inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also critical to note that as per Section 7(1) of the Black Money Act, "the tax authority who succeeds another authority as a result of change in jurisdiction or for any other reason, shall continue the proceedings from the stage at which it was left by his predecessor". As per the Act, the tax authority from Salem as a result of change in jurisdiction ought to have continued the proceedings u/s 10(1) of BMA initiated by his predecessor from Chennai vide letter dated 07.01.2019 and the order (if any) should have passed on or before 31.03.2021. Instead, on 16.02.2021 (i.e., 1.5 months before the expiry of limitation period), a fresh notice under Section 10(1) was issued by the DDIT/ADIT (Inv.), Salem. This was plainly an attempt to overcome the imminent expiry of the limitation period. It is submitted that the notice dated 16.02.2021, and all proceedings consequent thereto, including Assessment Order dated 25.03.2023 are in contravention of Section 11 of the Black Money Act, and are thus wholly without jurisdiction. This is further buttressed by the fact that the Assessment Order dated 25.03.2023 contains extracts from replies submitted by the Appellant in 2019 i.e., during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the same. The Appellant had also filed Form 67 claiming foreign tax credit of 10%. Despite the same, tax credit was not granted. It is submitted that even if the Form 67 was filed belatedly, the same ought to have allowed in terms of the judgement of Hon'ble Madras High Court in Duraiswamy Kumaraswamy vs. PCIT, WP No.5834 of 2022 and the Hon'ble ITAT, Chennai Bench in ITO vs. Smt. Chengam Durga in ITA No.1491/Chny /2023." 4. The ld. DR for the revenue submitted that the AO in assessment order u/s 10(3) has not discussed about the notice u/s 10(1) dated 07.01.2019. The AO has only mentioned the notice u/s 10(1) dated 16.02.2021. She further argued that if notice u/s 10(1) dated 16.02.2021 is taken for considering the limitation, then the assessment order is not time barred as per section 11(1) of the Act. 5. We have heard the rival submissions, perused the record of appeal papers, written submissions filed by the appellant and also paper book filed by the appellant containing pages 1-64. Section 11 of the BMA is as under: 11. Time limit for completion of assessment and reassessment: (1)No order of assessment or reassessment shall be made under section 10 after the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eign income and asset is excluded from the total undisclosed foreign income and asset for an assessment year in respect of an assessee, then, an assessment of such undisclosed foreign income and asset for another assessment year shall, for the purposes of section 10 and this section, be deemed to be one made in consequence of, or to give effect to, any finding or direction contained in the said order. 6. We note that first notice issued u/s 10(1) of BMA dated 07.01.2019 is similar to the second notice issued u/s 10(1) dated 16.02.2021 (Pg 1 & 35 of the Paper book). We further observe that both the aforesaid notices in substance are similar. Further even if we consider section 7(1) of BMA which speaks of "the tax authority who succeeds another authority as a result of change in jurisdiction or for any other reason, shall continue the proceedings from the stage at which it was left any other reason. Therefore, as per mandate of the Act, the tax authority DDIT/ADIT, Salem as a result of change in jurisdiction, if any, ought to have continued the proceedings u/s 10(1) of the BMA initiated by his predecessor from Chennai vide notice dated 07.01.2019 and the assessment order should hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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