The Income Tax Appellate Tribunal (ITAT) in Delhi heard the appeal of Shyam Lata, a resident of New Delhi, challenging the orders of the Income Tax Officer, Ward-29(5), New Delhi. The dispute arose from the assessment year 2010-11 regarding undeclared income from a property sale.
Shyam Lata, along with partners Manish Gupta and Sanjay Gupta, were implicated in the non-disclosure of capital gains from real estate transactions, leading to an income tax reassessment for the year 2010-11. The case was initiated due to discrepancies in the income declared by the partners and the actual financial transactions related to their partnership firm, M/s. Delhi Plastic Industries.
The Tribunal examined the sequence of events, from the sale of the property to the reassessment by the Income Tax Officer. After a detailed review, the Tribunal ruled in favor of the appellants, stating that the reassessment was unjust and constituted double taxation since the income in question had already been accounted for in the firm’s financial statements and taxed accordingly.
The decision emphasized the importance of clear financial documentation and proper declaration of income. It also highlighted the challenges in the interpretation of tax laws related to partnership operations and real estate transactions.
Order pronounced by Chandra Mohan Garg, Judicial Member, on October 7, 2022. All associated appeals (ITA Nos. 803 and 804) were also allowed, setting a significant precedent for similar cases.
Income Tax Appeal ITA 805/DEL/2020: Shyam Lata vs. ITO Ward-29(5) for A.Y. 2010-11
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