In a win for the Income-Tax (IT) officials, the Mumbai bench of Income-Tax Appellate Authority (ITAT) has confirmed undisclosed income of Rs 196 crore in the hands of an elderly woman in eighties and has allowed the officials to slap tax penalties on the said amount, Times of India.
c which is an entity registered in tax haven, the Cayman Islands. The account is registered in HSBC Bank Geneva, and at its peak had a deposit of Rs 196 crore.
The account was held by the Tharani family's trust and was used to settle the funds transferred to the account into the family trust.
It should be noted that Tharani had in an affidavit claimed that she did not have any bank account in HSBC Geneva and was not a shareholder or a director in GWU Islands. Meanwhile, she had also asserted that the alleged income, if any, can not be taxed given she is a non-resident Indian.
This is despite the fact noted by the ITAT that Tharani had provided a Bengaluru address and showed her status as that of a tax resident in India in 2005-06.
The ITAT also noted that as per Tharani's previous yearly income declaration of Rs 1.7 lakh shown in 2005-06, it would have taken her more than 11,500 years to earn the amount stashed in the said Swiss bank account.
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