Indian taxpayer gets relief in an undisclosed foreign assets case
What's the story
The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has rejected an appeal by the Income Tax Department in a case involving alleged undisclosed foreign assets. The case was against one Tarun Trikha and related to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The tribunal upheld the decision of Commissioner of Income Tax (Appeals), which had deleted the appeal made against him.
Case details
Allegations based on foreign assets
The case against Trikha was based on information about foreign assets allegedly owned by him.
The Assessing Officer (AO) had claimed that he was involved in investments, travel, and airlines businesses.
However, after hearing the department's appeal in BMA No. 15/Del/2025, the ITAT found no reason to interfere with CIT(A)'s order and dismissed the Income Tax Department's appeal.
Tribunal ruling
ITAT's ruling significant in foreign-asset context
The ITAT's ruling is significant in the context of foreign-asset proceedings, as it dealt with the attribution of foreign assets to the taxpayer.
The tribunal's decision hinged upon its examination of the material available in this case and whether CIT(A)'s findings warranted interference.
Notably, it also took into account information regarding Trikha's alleged association with Indonesian Commercial Airlines during FY 2012-13.
Defense strategy
Trikha denied having any foreign accounts or assets
In response to the allegations, Trikha denied having any foreign accounts or assets and working for Indonesian Commercial Airlines.
However, the AO dismissed his explanation, claiming it was a case of non-disclosure of foreign assets under the Black Money Act.
He then valued these undisclosed assets under Section 4 and 5 of the Black Money Act at ₹23.91 crore, imposing a 30% tax on them as per Section 3(1) of the same Act.
Case outcome
EOW filed chargesheet naming several individuals
The Economic Offences Wing (EOW) launched an investigation after Trikha informed his family about the matter.
The EOW's probe led to a chargesheet being filed on December 31, 2021, naming several individuals including two chartered accountants.
Representing Trikha in ITAT Delhi, Advocate Mayank Patawari argued that his client was a victim of identity fraud.
The CIT(A) accepted this argument and canceled the black money tax notice against him.