Judgment Summary:
The Income Tax Appellate Tribunal (ITAT) in Delhi ruled in the appeal filed by Sourabh Aggarwal against the Deputy Commissioner of Income Tax, Central Circle, Karnal, Haryana, for the assessment year 2017-18. The case involved a sum of ₹4.50 crores, which the appellants declared under the Pradhan Mantri Garib Kalyan Yojna (PMGKY) Scheme, 2016, after demonetization.
The crux of the matter revolved around whether the declared amount could be taxed under section 69A of the Income Tax Act, given that advance tax had already been paid on this amount and it was included in the PMGKY Scheme. The ITAT meticulously analyzed the provisions under the PMGKY Scheme as well as section 69A of the Income-tax Act to conclude that since the appellants had complied with all the conditions under the PMGKY Scheme, the declared amount could not be brought to tax under section 69A.
Furthermore, the ITAT noted that the appellants had shown bona fide intention by not only paying the advance tax but also by declaring the amount under PMGKY Scheme and fulfilling all the requisite conditions, including payment of tax, surcharge, penalty, and making a deposit into the PMGKY Deposit Scheme.
In conclusion, the ITAT allowed the appeals filed by the appellants, thereby setting aside the addition made by the Assessing Officer under section 69A of the Income-tax Act, and directed the Assessing Officer to delete the impugned addition.
This landmark judgment highlights the Tribunal’s diligent interpretation of law, ensuring justice based on the principles of equity, fairness, and regard to the statutory provisions.
