How a man won black money case with EOW's help

Trikha, a resident of Karol Bagh, Central Delhi, filed his income tax return claiming low income from other sources. However, he received a shocking black money tax notice from the Income Tax Department stating involvement in business related to investments, travel, and airlines, specifically Indonesian Commercial Airlines (Pacific Royale Airways).

The IT department also discovered information about several foreign bank accounts allegedly belonging to Trikha, including fixed deposits in Singapore with United Overseas Bank, Singapore and Overseas Chinese Banking Corporation. Trikha denied owning any of these accounts or assets.

The Income Tax Assessing Officer dismissed Trikha's explanation and imposed a tax of 30% on the undisclosed assets valued at Rs 23.91 crore under Section 4 and 5 of the Black Money Act, along with interest as per Section 40. Trikha did not accept the assessment and informed his sister, leading to a complaint with the Delhi Police, Economic Offences Wing (EOW).

The EOW registered an FIR and conducted an investigation, resulting in a charge sheet being filed against several individuals, including two chartered accountants, on December 31, 2021.

Trikha's case went through the legal system, with the Income Tax Department appealing the decision at the ITAT Delhi. After reviewing evidence, including findings from a Special Court dealing with economic offences and a charge-sheet filed by the Economic Offences Wing, the ITAT Delhi ruled that Trikha was a victim of identity fraud.

The tribunal accepted Trikha's explanation that the bank accounts attributed to him were fraudulently held in his name. The Income Tax Department was unable to provide convincing evidence to disprove Trikha's claims, leading to the dismissal of their appeal and the cancellation of the black money tax notice against Trikha.