Now Reading: ITAT dismisses income tax appeal in Black Money Act cases
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ITAT dismisses income tax appeal in Black Money Act cases
The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has dismissed the Income Tax Department's appeal in a Black Money Act case involving alleged undisclosed foreign assets of Tarun Trikha, upholding the relief granted by the Commissioner of Income Tax (Appeals). Livemint reports that the tribunal, comprising S. Rifaur Rahman and Vimal Kumar, found no reason to interfere with the CIT(A) order which had deleted the addition made against Trikha for assessment year 2021-22.
In a separate case reported by the Economic Times, the same ITAT bench also ruled in favour of a couple, Mr and Mrs Tiwari from Pitampura, Delhi, who had received a black money tax notice for allegedly holding shares of foreign companies in British Virgin Islands and Singapore. The tribunal upheld the CIT(A) decision to delete additions of Rs 2.25 crore, after the couple provided evidence that foreign bank balances were loans from individuals with sufficient financial capacity, and that the relevant company had ceased operations.
The ITAT also deleted the remaining addition of USD 16,283 commission income in SHSA, noting that debit entries in the same bank account showed the transaction resulted in a loss, not positive income. The orders were passed in August 2026.
Indian Opinion Analysis
Both Livemint and the Economic Times report the ITAT decisions in a neutral, fact-based manner, with no discernible slant toward the government or the taxpayers. Livemint focuses on the legal process and tribunal reasoning, while the Economic Times provides more detail on the Tiwari couple's evidence and the lenders' financial capacity. The balanced coverage suggests the tribunal's rulings were based strictly on documentary evidence, with no broader policy implication beyond the specific facts of each case.
Both stories highlight that the ITAT rejected the department's appeal because the tax authorities failed to prove that the foreign assets were undisclosed income. The rulings underscore that mere suspicion or gross credits in bank accounts are insufficient for additions under the Black Money Act without establishing the taxpayer's ownership or concealment. The next step for the department would be to appeal to the High Court, though no such move has been reported.
Coverage: 2 sources, 2 neutral
Sources (2): livemint.com (neutral report), economictimes.indiatimes.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Updated: this story now draws on 2 sources.
