This comprehensive article examines the case of Balkishan vs. ITO Ward-37(1), New Delhi, regarding the assessment year 2011-12, which addresses significant aspects of income tax law and procedural fairness in the context of undisclosed income.
The dispute centers on the addition of Rs.24,00,000 to the income of Balkishan as undisclosed income. The addition was based on the assumption that this amount was deposited in his bank account without any supporting documentation or clarification from the taxpayer.
The article delves into the procedural aspects of the case, including the initial assessment by the Income Tax Officer (ITO) and subsequent appeals to the CIT(A). It highlights the critical role of proper documentation and the right of the taxpayer to be heard, which were significant issues in this case.
The analysis covers the legal principles involved, particularly the interpretation of sections 144 and 147 of the Income Tax Act. The implications of this case for taxpayers and practitioners in handling disputes related to undisclosed income are thoroughly discussed.
The decisions at various levels of appeal, including the tribunal’s final decision, are examined. The rationale behind the judicial findings and their consistency with existing tax laws are critically evaluated.
The article concludes with a discussion on the broader implications of this case for the practice of tax law in India, particularly in the context of procedural fairness and the assessment of undisclosed income.
Detailed Analysis of ITA 1953/DEL/2020: Balkishan vs. ITO Ward-37(1), New Delhi
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