The case of Parveen Garg vs. Income Tax Officer, Ward-40(4), New Delhi pertains to ITA No. 1266/DEL/2019 for the assessment year 2008-09. This case highlights significant aspects of handling unexplained cash transactions and the legal frameworks surrounding such issues.
Parveen Garg was scrutinized following substantial unexplained cash deposits in multiple bank accounts. The Income Tax Department initiated a reassessment under section 147, after discrepancies were noted between the declared income and the amounts deposited in the accounts for the assessment year 2008-09.
During the reassessment, it was noted that Garg did not sufficiently explain the source of the cash deposits, which led to an appeal to the CIT(A) and subsequently to the ITAT. The tribunal focused on the adherence to procedural justice and the appellant’s failure to provide a convincing explanation for the cash deposits.
The tribunal dismissed the appeals, upholding the additions made by the lower authorities. This case sets a precedent on the importance of providing cogent evidence when large sums of money are deposited, which do not correlate with declared income.
This case emphasizes the rigorous standards required by tax authorities to ensure compliance with tax laws and the critical nature of maintaining detailed records to substantiate financial transactions. The decision also underscores the role of the judiciary in interpreting these complex tax issues.
Analysis of ITA 1266/DEL/2019: Parveen Garg vs. ITO Ward-40(4), Assessment Year 2008-09
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