Lawstreet Journal

ITAT Says “No Special Knowledge Needed to Know That Offshore Entities Are Used To Launder Unaccounted Money” [READ ORDER]

Lawstreet Journal 22 Jul 2020 8:01pm

Image courtesy: Lawstreet Journal Executive ITAT Says “No Special Knowledge Needed to Know That Offshore Entities Are Used To Launder Unaccounted Money” [READ ORDER]

The ITAT said that the common people are informed about the type of transactions that are done by individuals in locations including the Cayman Islands. 

The Income Tax Appellate Tribunal (ITAT) has vindicated and upheld an order issued by the Commissioner of Income Tax (Appeals) making Renu Tharani, an 80-year-old elderly woman, pay tax on over Rs.196 crore that has been found in HSBC Private Bank, Geneva, Switzerland. The account is named Tharani Family Trust, of which Tharani stands to be a beneficiary. 

The bench consisting of Vice President Pramod Kumar and Amarjit Singh, Judicial Member of ITAT, Mumbai bench was hearing Renu Tharani's appeal which was against Commissioner of Income Tax (Appeals) order that confirmed the order issued by the Assessing Officer in 2014, reopening the assessment for the financial year of 2005-2006, by passing a notice under Section 148 of the Income Tax Act, 1961.

The explanation given for starting a reassessment was that some more information about the appellant was received from the office of DIT (investigation) Bangalore. According to the source, the appellant had declared an income of Rs. l.7 lakh for the financial year of 2005-2006, did not disclose an account with HSBC Bank, Geneva. Furthermore, it was noticed in the bank statement of the account that Tharani had a peak balance of US$ 39738122 in the account overseas during the period 2005-2006 which amounted to Rs. 196,46,79,146 during the period in question. 

Post an evaluation of the financial statements and the assessing officer's order, CIT(A) came to the… Continue Reading...

Tagged: Income Tax Appellate Tribunal  
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