Govt focus on expeditious framework for Black Money Act

New Delhi, March 7 (SocialNews.XYZ) Considering the objective of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BM Act), the assessment is to be completed at the earliest possible without keeping the same pending till the time barring date, the Central Board of Direct Taxes (CBDT) said in a set of guidelines issues earlier.

Before passing the assessment order, show cause notice would be issued by DDIT (Inv)/ADIT (lnv)/AO concerned to the assessee within 30 days of receipt of substantial information from all sources including relevant foreign jurisdiction(s) and completion of such further inquiries as may be required.

Thereafter, the DDIT (Inv.)/ADIT (Inv) concerned as AO should put up a draft of the assessment order for administrative approval of Addi DIT(Inv)/JDIT(lnv) concerned within 30 days of receipt of the assessee's reply or elapse of the time allowed for the assessee's reply under the show cause notice where there is no response from the assessee's side, whichever is earlier, the guidelines said.

Focus of the BM Act is on criminal consequences i.e. prosecutions as the options of compounding and ITSC, which are there in the Income-tax Act, are not there in the BM Act.

An undisclosed asset located outside India shall be charged to tax on its value in the previous year in which such asset comes to the notice of the Assessing Officer.

With a view to have more expeditious and efficient administrative framework for implementation of the BM Act for achieving the intended objectives of the separate law (BM Act) enacted to deal with undisclosed foreign assets cases, the CBDT has authorized DGIT (Inv)/Pr DIT(Inv) to assign concurrent jurisdiction of Assessing Officer (AO) to DDIT (Inv)/ADIT(Inv) concerned for exercising the powers and functions of AO under the BM Act.

Though no statutory time limit for issuance of notice under section 10(1) is specified under the BM Act, wherever the conditions in respect of issuance of notice are satisfied, AO is required to issue the notice preferably within 30 days from the end of the previous year in which such information was received by him, came to his notice.

However, if the notice is not issued within the period of 30 days, reason thereof is to be recorded in writing by AO concerned, to be duly approved by Pr DIT/Pr CIT concerned.

Once investigation is initiated in an undisclosed foreign asset case, proper reference(s) under available tax treaties/legal instruments should be made to relevant foreign jurisdictions at the earliest possible and preferably, within 21 days of initiation of the investigation. Follow-up references, if any, pursuant to receipt of information should be made preferably within 15 days of receipt of such information.

Source: IANS