Section 69A and 153A –Search action – Information – Foreign Asset – no incriminating material – Burden of proof – Addition not justified based on base note – contents of the Base Note incomplete.

8. Pr. Commissioner of Income Tax Central -4, Mumbai Vs. Arunkumar Ramniklal Mehta,

[ITXA. 118 OF 2020 with ITXA. 132 OF 2020, dated 01/07/2026 (Bom)(HC)] Assessment Year 2006-07.

Section 69A and 153A –Search action – Information - Foreign Asset - no incriminating material – Burden of proof - Addition not justified based on base note - contents of the Base Note incomplete.

Two Appeals have been filed against the same order, as one of them raises issues arising out of an Appeal filed by the Revenue before the Tribunal, whereas the other one is concerned with issues arising from the Appeal filed by the Assessee.

The Respondent-Assessee was a promoter and director in various entities forming part of the Rosy Blue Group. He filed his original Return of Income for Assessment Year 2006-07 on 31.07.2006 declaring a total income of Rs.18,16,910. Since his Return of Income was not selected for scrutiny, the intimation as issued under Section 143(1) of the Act had become final.

Information in the form of a Base Note was received by the Government of India from the French Government inter alia, suggesting that the Assessee was a beneficiary of a private discretionary Trust being the Oak Trust, which held cert