Mr Trikha from Karol Bagh, Central Delhi, filed his income tax return (ITR) using form ITR-1, claiming he had a low income from other sources. However, he got a shocking black money tax notice from the Income Tax Department stating that he was engaged in business related to investments, travels and airlines, specifically Indonesian Commercial Airlines (Pacific Royale Airways).Additionally, the Income Tax Department informed Trikha that they had uncovered information about several foreign bank accounts that he allegedly holds, including fixed deposits (FD) in Singapore. These accounts were reportedly opened between January 2017 and February 2018, primarily with the United Overseas Bank, Singapore and the Overseas Chinese Banking Corporation. Tikha, however, did not disclose any of this information in his ITR.In response, Trikha said that he does not possess any foreign accounts or assets and does not work for Indonesian Commercial Airlines (Pacific Royale Airways). The Income Tax Assessing Officer (AO) dismissed his explanation and said that this was a fit case for non-disclosure of foreign assets under Black Money Act. So the AO valued the undisclosed assets under Section 4 and 5 of Black Money Act and valuing them at Rs 23.91 crore, imposed 30% tax on it as per Section 3(1) of the Black Money Act and interest as per Section 40.For reference, here’s an extract of the undisclosed bank information that the tax department shared in ITAT Delhi:
Man had foreign bank accounts, FD in Singapore, no ITR disclosure; income tax dept sent black money notice, but ITAT Delhi cancelled the notice for this reason - The Economic Times
Tax dept found Singapore FD & foreign bank accounts in Karol Bagh man's name: ITAT Delhi cancels black money notice over identity theft
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