Mr. Rohit, an Indian citizen, returned to India in March 2013 to assume the role of CEO at ABC (P) Ltd., an Indian company. He served in this…

(a) Every assessee would be liable to tax@30% in respect of his undisclosed foreign income and asset of the previous year. Undisclosed foreign asset would be liable to tax in the previous year in which such asset comes to the notice of the Assessing Officer. Section 2 (2) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 defines "assessee” to include a person being - (a) a resident in India within the meaning of section 6 of the Income-tax Act, 1961 in the previous year; or (b) a non-resident or not ordinarily resident in India within the meaning of section 6 (6) of the Income-tax Act, 1961 in the previous year but who was resident in India either in the previous year to which the income referred to in section 4 relates; or in the previous year in which the undisclosed asset located outside India was acquired. Mr. Rohit is non-resident for the P.Y. 2023-24 (the previous year in which notice is issued by the Assessing Officer), since he returned to the USA in April 2020 and visited every year only for 1 month. He was also a non-resident for the P.Y. 2012-13, when he acquired shares of listed companies in USA and P.Y. 2020-21, when he established a leather goods manufacturing factory in Malaysia, since he was in India only during the previous years from P.Y. 2013-14 to P.Y. 2019-20. However, he was resident in India in the P.Y. 2015-16, when he acquired one apartment in London. Accordingly, the issue of notice on Mr. Rohit under section 10 of the Black Money Act, 2015, is tenable in law, in respect of apartment in London since he was resident in the previous year 2015-16 when the property was acquired. However, notice issued in respect of shares of listed companies in USA acquired in the P.Y.2012-13 and leather goods manufacturing factory established in Malaysia in the P.Y.2020-21 is not tenable in law, since Mr. Rohit was non-resident in the previous years in which undisclosed assets were acquired and also in the previous year in which it comes to the notice of Assessing Officer. As regards commission earned from various foreign buyers located outside India, notice can be issued to the extent the same relates to P.Y.2015-16 to P.Y.2019-20. Undisclosed foreign income relating to the period prior to P.Y.2015-16 does not fall within the scope of Black Money Law, which is effective only from A.Y.2016-17.