Sole beneficiary of trust: ₹ 196 crore held by HSBC (P) Bank, Switzerland, in the name of Tharani Family Trust, of which the assessee was a beneficiary, is assessable as the undisclosed income of the assessee

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Sole beneficiary of trust: ₹ 196 crore held by HSBC (P) Bank, Switzerland, in the name of Tharani Family Trust, of which the assessee was a beneficiary, is assessable as the undisclosed income of the assessee

 

Renu T. Tharani (Ms) v. DCIT – Date of Judgement : 16.07.2020 (ITAT Mumbai)]

Short Overview of the case:

Related Assessment year : 2006-07
 The assessee is an individual.
The assessee had filed her income tax return, on 29.07.2006, disclosing an income of ₹ 1,70,800 for the relevant previous year, but subsequently the investigation wing of the income tax department, received information that the assessee is having a bank account with HSBC (P) Bank (Suisse) SA Geneva.
Based on this information, was reopened for fresh assessment was made.
The assessee denied having any bank account.
The Assessing Officer made the addition of ₹ 196 crore held by HSBC (P) Bank, Switzerland, in the name of Tharani Family Trust, of which the assessee was a beneficiary, is assessable as the undisclosed income of the assessee. Order of the Assessing Officer is affirmed by the CIT(A).
On appeal affirming the view of the lower authorities the Tribunal observed that the assessee is not a public personality like Mother Terresa that some unknown person, with complete anonymity, will settle a trust to give her US $ 4 million, and in any case, Cayman Islands is not known for philanthropists operating from there; if Cayman Islands is known for anything relevant, it is known for an atmosphere conducive to hiding unaccounted wealth and money laundering.
HSBC (P) Bank has also been indicted by several Governments worldwide and how it has even confessed to be being involved in money laundering.
196 crore held by HSBC (P) Bank, Switzerland, in the name of Tharani Family Trust, of which the assessee was a beneficiary, is assessable as the undisclosed income of the assessee

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