The Classic Partners LLP

Assessment of Other Person (BMA)

Expert representation in "assessment of other person" proceedings under Section 11 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Where the Assessing Officer finds that an undisclosed foreign income or asset detected during the assessment of one person belongs to another person, that other person is brought into the BMA net through a separate notice and assessment proceeding.

Defend an "Other Person" Notice

What is Assessment of "Other Person" Under the BMA?

During the course of assessing one taxpayer under the BMA, the Assessing Officer may come across an undisclosed foreign income or asset that, on examination, appears to belong to a different person (the "other person"). The BMA provides machinery to assess such other person separately — analogous, in concept, to Section 153C of the Income Tax Act for searched cases. The other person is issued a fresh notice, given an opportunity of hearing, and assessed under Section 10 in his / her own name.

This provision is heavily relied on by the Department in family / closely-held cases — where bank accounts, foreign trusts, foreign companies, or properties are held in the name of one family member but on review appear to belong economically to another. It is also frequently used in cases involving foreign benami structures, nominee shareholders, and beneficial owner determinations under FATCA / CRS data.

When is "Other Person" Assessment Triggered?

Bank account or investment in the name of a family member, with funding traced to the alleged beneficial owner.
Foreign trust or foreign company where settlor / beneficial owner is alleged to be a different person.
Property abroad held in the name of a relative, where source of funds is traced to another resident.
Nominee shareholding in foreign companies / LLPs, with control alleged to lie with a different person.
FATCA / CRS data indicating an Indian resident as the beneficial owner of a foreign account held in another name.
Search / survey-driven cases where documents indicate that the asset is being held on behalf of another.

Our "Other Person" BMA Defence Services

Notice Diagnostic

Detailed review of the foundation document — the AO's note recording belief that the asset belongs to the "other person".

Beneficial Ownership

Beneficial-ownership analysis under FATCA / CRS, trust deeds, and corporate documents.

Source & Funding Trail

Forensic reconstruction of source-of-funds and transaction trail to rebut attribution.

Reply & Submissions

Legally grounded replies challenging jurisdiction, attribution, and quantum.

Hearing Representation

Personal hearings before the Assessing Officer and Joint / Additional CIT.

Appeal Continuity

Appeals before CIT(A), ITAT (BMA bench), High Court, and Supreme Court.

Common Defences in "Other Person" BMA Cases

Residency challenge: the "other person" is non-resident under Section 6 of the Income Tax Act and falls outside the BMA.
Genuine ownership: the foreign asset genuinely belongs to the named holder, supported by source of funds and tax filings in the relevant jurisdiction.
Inadequate satisfaction: the AO's recorded satisfaction that the asset belongs to the "other person" is not based on tangible material — a jurisdictional defect.
Limitation: the assessment is barred under Section 11 of the BMA on facts.
Double taxation: the same asset cannot be taxed twice — once in the named holder's hands and again in the "other person's" hands.
Reliance on inadmissible material: stolen / leaked data without independent corroboration may not constitute the basis for a BMA assessment.

Why "Other Person" BMA Cases are High-Stakes

The full 30% tax on the value of the foreign asset is attributed to the "other person", not just the income.
A 3-times penalty under Section 41 takes total exposure to 120% of asset value.
Prosecution provisions under Sections 50–58 carry imprisonment up to 7 years, with the "other person" personally exposed.
The named holder is typically a close family member — proceedings strain personal relationships in addition to financial exposure.
Findings can trigger parallel ED / PMLA investigation and FEMA proceedings.

Why Choose The Classic Partners

Specialist BMA defence experience — including attribution disputes and beneficial ownership cases.
Forensic capability to reconstruct source-of-funds and transaction trail.
Integrated tax + legal team coordinated with senior counsel.
Discreet handling of sensitive family and closely-held matters.
Continuity with main BMA assessment and technical defence work.

Frequently Asked Questions

How is an "other person" identified by the Assessing Officer?

During the BMA assessment of one person, the AO may find documents or evidence indicating that an asset belongs economically to another person — for example, funding traced from another individual, beneficial-ownership disclosures in FATCA / CRS data, or trust / company documents identifying a different beneficial owner. The AO records his satisfaction and then issues a notice to that "other person".

Can a non-resident be assessed as "other person" under the BMA?

No. The BMA applies only to persons who are resident in India under Section 6 of the Income Tax Act. A non-resident cannot be assessed as an "other person" under the BMA, even if the asset originally surfaced in the assessment of a resident. Residency status is therefore a critical first-line defence.

Can the same asset be taxed in two hands?

As a matter of principle, the same undisclosed foreign asset cannot be taxed twice. Where the AO assesses the value in the "other person's" hands, corresponding relief / dropping is appropriate in the named holder's hands. Coordinating the two proceedings to avoid double taxation is a key litigation strategy.

Is the limitation different for "other person" assessment?

Section 11 of the BMA prescribes a uniform limitation — 2 years from the end of the FY in which the notice was issued, subject to exclusions. The clock starts from the date the notice is served on the "other person", not from the original BMA proceeding.

What is the role of FATCA / CRS data in these cases?

FATCA / CRS information from foreign tax authorities frequently identifies an Indian resident as the beneficial owner of an account held in another name. This is often the foundation for "other person" assessment. Rebutting the beneficial-ownership attribution and verifying the accuracy / completeness of the FATCA / CRS data are central to the defence.

Can findings in "other person" proceedings lead to ED / PMLA action?

Yes. Findings of undisclosed foreign assets under the BMA frequently trigger parallel investigations by the Enforcement Directorate under PMLA, 2002, and FEMA, 1999. Coordinated defence across all three regimes is critical, and our team works closely with senior counsel for cross-forum strategy.

Defend an "Other Person" BMA Notice

Get experienced CA-led defence in attribution, beneficial-ownership, and limitation cases.