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9.1.10 As per both the trust deeds, the settlor is authorised to be the Principal Beneficiary of the Trust Fund and pay the income from the Trust fund to the Principal Beneficiary - the settlor- Shri. NarayanaswamyRamamoorthyfor life.

Clause 3 in the Windsor Trust Settlement deed:

Clause 3 Principal Trust for Beneficiaries (Life Interest/Success;ye Life Interest] The Trustee shall hold the Trust Fund during the Trust Period upo trust.

3.1 to pay the income of the trust fund to the principal beneficiary(as defined in Part 1 of :-14-: BMA. No:01/Chny/2023 Schedule 4) for life ("the Life interest") and subject to that 3.2 to pay the income of the Trust fund to the successive Principal Beneficiary (as defined part II of Schedule 4) for life ("the successive Life interst")"

8. The Ld. Counsel for the assessee, submitted that the ld. CIT(A) erred in confirming additions made by the Assessing Officer towards investment in Windsor Trust and Dalham Trust, respectively, for the purported balance in accounts without appreciating fact that the assessee neither contributed to the corpus of the trust nor the beneficial owner of the trust, which is evident from the confirmation letter filed by Shri. Balaji Ramamoorthy, son of the assessee, where he has categorically admitted that the entire contribution to Windsor Trust is from him and his associate entities. The Ld. Counsel for the assessee, further submitted that although the assessee being a Principal Settlor of the trust for both trusts, but fact remains that the entire affairs of the trust was managed by his son Shri. Balaji Ramamoorthy. The assessee was named as settlor for both trusts out of love and affection for his father. This is fortified by the fact that the assessee neither remitted any amount to both trusts nor received any funds from the :-19-: BMA. No:01/Chny/2023 trusts. In fact, the assessee has received inward remittance from his son Shri. Balaji Ramamoorthy, and made outward remittance to various beneficiaries as gift during the financial year 2015-16 relevant to assessment year 2016-17. Except this, there is no evidence with the Assessing Officer to allege that the assessee has made contribution to both the trusts. The Assessing Officer on the basis of information received from CRS portal, made a bold allegation that the investment in both the trusts is made by the assessee and it is taxable under Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act, 2015, even though, the assessee filed various evidences to prove that the source for investment in the Windsor Trust is loan borrowed from bank in United Kingdom and for the Dalham Trust, all contributions is from his son. The Ld. Counsel for the assessee, referring to loan sanction letter from EFC Private Bank to BGL Reads Trust Company Limited, the trustee of the venture company trust submitted that, the trustee have borrowed loan facility of 2 million GBP for purchase of property. The source for investment in Windsor trust is out of loan borrowed from bank. The Assessing Officer and the CIT(A), on the basis of trust deed and the guarantee given to the bank came to the :-20-: BMA. No:01/Chny/2023 conclusion that, the assessee is a principal beneficiary of the trust and whatever investment made in trust is unexplained income of the assessee under Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act, 2015.

11. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. The facts with regard to the impugned dispute are that as per CRS information in Insight portal, the department has received information on account balance in Windsor Trust under account no. GG004789_ADR06332 in Guernsey, where the aggregate account balance was to an extent of Rs. 24,09,00,431/-. The department had also received information on account balance of Dalham Trust under account no. GG004793_ADR06332 in Guernsey with an aggregate account balance to an extent of Rs. 2,00,23,778/-. Admittedly, the appellant is a Settlor for Windsor Trust and Dalham Trust. In fact, the appellant being a Settlor of the trust has formed two trusts in the year 2003 with initial corpus of 3,500 GBP each in both the trusts. It is also an admitted fact that the assessee has not disclosed any foreign assets or income with reference to above two trusts in his return of income filed for the impugned assessment year. The Assessing Officer, has made additions towards balance in accounts on both trusts under :-25-: BMA. No:01/Chny/2023 Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act, 2015, on the ground that although the assessee being the beneficial owner of both the trusts, but he has failed to explain source for investment in both the trusts. The Assessing Officer and CIT(A) have discussed the issue at length in light of the trust deed of both the trusts, the day-to- day management and affairs of the trust and also dealt with the arguments of the assessee in light of confirmation letter received from his son Shri. Balaji Ramamoorthy towards investment in both trusts. The assessee primarily contended that except being a Settlor of the trusts, he has not contributed any funds to both trusts including the initial contribution of 3,500 GBP in the year 2003. In this regard, the assessee has furnished bank account copies for the assessment year 2016-17 and argued that except inward remittance from his son Shri. Balaji Ramamoorthy and outward remittance to various beneficiaries as gift given by him, he is not having any other transactions that relates to both trusts for the impugned assessment year. The assessee further contended that, the value of investment in Windsor Trust is consisting of immovable property and same has been explained out of loan borrowed from EFC Private Bank. The :-26-: BMA. No:01/Chny/2023 assessee had also explained the account balance with the Dalham Trust in light of confirmation letter filed by Shri. Balaji Ramamoorthy, where he has owned up total investment in the trust and also claims that entire contribution to the trust is by himself and his associate entities.

12. In light of above factual background, if we examine the reasons given by the Assessing Officer to assessee the account balance in both trusts as undisclosed foreign asset/income of the assessee u/s. 10(3) of Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act, 2015, we find that the sole basis for the Assessing Officer to arrive at above conclusion is CRS information in Insight portal received by the Department, where aggregate account balance of Rs. 24,09,00,431/- was shown in the name of the Windsor Trust. The Assessing Officer on the basis of above information reached to the conclusion that the assessee is a Settlor of the trust and became principal beneficiary and consequently, whatever investment in the trust is undisclosed income/asset of the assessee u/s. 10(3) of Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act, 2015. We do not find any merits in the findings of the Assessing :-27-: BMA. No:01/Chny/2023 Officer for the simply reasons that, except CRS information, the Assessing Officer does not have any other evidence to allege that the assessee has made contribution to the above trusts. The Assessing Officer neither having the bank statement of the assessee to allege that the assessee has made outward remittance of funds, nor proved that the assessee is deriving any income from above trusts outside India. Although, initial contribution of 3,500 GBP towards corpus of the trust was shown to have paid by the assessee as a Settlor, but the assessee has proved that even said contribution was made by his son Shri. Balaji Ramamoorthy, a citizen of USA. The allegation of the Assessing Officer and CIT(A) that, because the assessee is a settlor of the trust, he remains principal beneficiary is totally incorrect and devoid of merits, more particularly in the context when other trustee are managing the affairs of the trust and also beneficial owners of trust properties.