Section 139(1) Explanation 4 — the law in short
What the courts have decided on section 139(1) Explanation 4, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Addl. CIT v Jatinder Mehra
ITATHelps taxpayer
My name appears as beneficial owner on a foreign bank account opening form I never signed. Is that enough to tax the balance in my hands?
No. The Delhi Bench upheld deletion of an addition of Rs 5,66,47,000 where the account stood in the name of a British Virgin Islands company whose sole director and shareholder was the assessee's son, and the money had come from a trust. Beneficial ownership under s.2(11) requires that the person provided the consideration and exercises control; a name and a passport number on an account opening form, without more, does not establish it.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.
