Assessment of Other Person Under the Black Money Act refers to the specialised assessment mechanism used when undisclosed foreign income or undisclosed foreign assets surface during proceedings against one taxpayer — but the Assessing Officer concludes that those assets or income actually belong to a different person. In such cases, the AO invokes Section 11 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, and initiates a separate assessment on that “other person” — even though the original notice, search, or proceeding may have been directed at someone else entirely.
This provision closely mirrors Section 153C of the Income Tax Act, 1961, but operates under the far harsher Black Money regime. Section 11 is invoked in situations where, during search, survey, or regular assessment under Black Money law against Person A, the department finds foreign bank statements, offshore trust beneficiary letters, property documents, or ESOP / RSU records that genuinely belong to Person B — a family member, business partner, controlled entity, beneficial owner, or a completely unrelated third party. The consequence for the “other person” is a full-fledged Black Money Act assessment with flat 30% tax, penalty of up to 300%, and prosecution risk.
We offer end-to-end advisory and representation services for Assessment of Other Person under the Black Money Act — from reviewing the Section 11 / Section 10 referral, verifying the legal sufficiency of the jurisdictional recording of satisfaction, analysing whether the assets or income genuinely belong to the “other person”, building a clean factual and beneficial ownership defence, preparing replies and representations, to appearing before the Assessing Officer, CIT(A), ITAT, High Court, and managing parallel Income Tax and FEMA proceedings — so that your exposure as the “other person” is contested on strong legal, factual, and procedural grounds.
The person against whom the original search, survey, or Black Money notice is issued under Section 10.
A separate person whose undisclosed foreign assets / income are found during proceedings against someone else.
The AO of the searched person must record satisfaction that certain assets or information relate to a different person.
The recorded satisfaction and relevant material are transferred to the AO having jurisdiction over the “other person”.
The AO of the other person initiates full-fledged Black Money Act proceedings under Section 10 as if the notice were original.
Detailed review of the Section 11 / Section 10 notice, underlying material, and linking information.
Scrutiny of the satisfaction note recorded by the AO for legal sufficiency and jurisdictional validity.
Analysis of whether the foreign asset or income truly belongs to the other person or to someone else.
Preparation of detailed replies, fact sheets, valuation support, and legal submissions to the AO.
Attending hearings before the Assessing Officer and managing case correspondence throughout.
Appeals before CIT(A), ITAT, and writ petitions before the High Court and Supreme Court.
Defending penalty proceedings and managing prosecution risk under the Black Money Act.
Coordinated defence across Income Tax assessments, FEMA compounding, and related proceedings.
Foreign assets of one family member surface in another family member’s Black Money proceedings.
Partnership, joint venture, or business associate’s foreign holdings emerging in a linked case.
Documents of group companies or directors / KMPs surfacing during a searched entity’s case.
Assets legally held in one name but with the AO alleging another person is the real beneficial owner.
Named or discretionary beneficiaries of offshore trusts surfacing in a settlor / protector’s case.
Persons alleged to be nominees or benamidars for someone else’s undisclosed foreign holdings.
Employees, advisors, or key staff whose names appear in documents of a searched employer.
Individuals named in Panama / Paradise / Pandora Papers or similar leaks as controlling persons.
You’ve received a Black Money Act notice referring to material found in someone else’s proceedings.
Your name has surfaced in documents or statements during another person’s IT search or survey.
AO alleges you are the beneficial owner of foreign assets officially held by another person.
You appear as a beneficiary, protector, or shareholder in an offshore trust or entity under scrutiny.
Coordinated Black Money proceedings across a family / business group requiring group-level defence.
Department treats you as a nominee or benamidar for another person’s undisclosed foreign holdings.
Directors, CFOs, and signatories appearing in documents seized from a company’s premises.
Specific references to you in Panama / Paradise / Pandora Papers or other offshore data leaks.
Confidential review of the Section 11 / Section 10 notice, linked proceedings, and underlying material.
Analysis of the satisfaction note’s validity, jurisdiction, and legal sufficiency as a core defence layer.
Building the beneficial ownership and source-of-funds defence with documents and contemporaneous evidence.
Drafting replies, filing submissions, and attending hearings before the AO and senior tax officials.
CIT(A), ITAT, High Court, and Supreme Court appeals with coordinated penalty and prosecution defence.
Partner with our specialists for end-to-end defence in Assessment of Other Person under the Black Money Act — notice review, satisfaction-note challenge, ownership defence, appeals, and prosecution-risk advisory — all under one roof.
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