The Income-Tax Appellate Tribunal's Mumbai bench confirmed the additional amount of Rs 196 crore in the Swiss account of Renu Tharani.
The tax tribunal has asked a woman to pay tax and penalties on undisclosed income of Rs 196 crore in a Swiss bank account.
The Income-Tax Appellate Tribunal (ITAT)'s Mumbai bench confirmed the additional amount in the Swiss account of Renu Tharani, an elderly taxpayer, a report by The Times of India said.
The HSBC Geneva account is under the name of Cayman-Islands based GWU Investments, which transferred funds to the Tharani Family Trust.
Renu Tharani is the only discretionary-beneficiary of the account, which was opened in 2004.
Beneficiaries of overseas trusts usually deny foreign bank accounts, officials told the publication. They also often change their status to "non-resident", to avoid paying tax on overseas income.
The I-T department’s investigation wing found that Tharani had not disclosed the Swiss bank account in her I-T returns for 2005-06, the report said.
In an affidavit, Tharani claimed that she is a non-resident. She denied having a bank account in HSBC Geneva, and being a shareholder or director at GWU Investments.
In 2005-06, Tharani had given a Bengaluru address in her I-T returns and declared an income of Rs 1.7 lakh.
The ITAT bench bench said even after Tharani updated her status to "non-resident", it is unlikely that she would have accumulated Rs 196 crore in the short duration of one year.ITAT added that based on her previously declared income, it would take her 11,500 years to earn Rs 196 crore.