This case involves an appeal by Devender, a resident of Rohtak, against the order passed by the Income Tax Officer (ITO), Ward-1, Rewari for the assessment year 2013-14. The appeal addresses the issue of delayed filing due to the COVID-19 pandemic and disputes over large deposits made in a joint bank account.
The appeal was filed after a delay of 264 days which fell during the COVID-19 pandemic. The Honorable Supreme Court granted a relaxation in limitation periods due to the pandemic, allowing the appeal to proceed. The primary issue in dispute involves an addition of Rs. 64,22,000 to Devender’s income, treated as unexplained money from undisclosed sources.
During the proceedings, the appellant contended that the deposits were related to the sale of agricultural land owned by his relatives and not by him. The bank account in question was a joint account, with the primary holder being a relative involved in the land sale. The IT Department contested the source of the deposits, leading to significant legal scrutiny.
The tribunal meticulously examined the submissions, evidence, and legal precedents related to the case. It acknowledged the extraordinary circumstances caused by the pandemic and focused on the substantive issue of the source of the bank deposits. After considering all evidence, the tribunal found that the deposits were not attributable to the appellant but to transactions involving his relatives.
The final judgment favored the appellant, removing the additions made to his income. This decision highlights the importance of clear documentation and the recognition of genuine transactions in tax-related disputes.
This case sets a precedent on handling tax disputes and filing delays caused by global emergencies such as the COVID-19 pandemic. It also underscores the need for taxpayers to maintain transparent and verifiable records to substantiate their financial activities.
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform