9911796707
|
Home
Issues involved: Appeal against Delhi High Court's order rejecting Revenue's application u/s 256(2) of the Income-tax Act, 1961 regarding cash credit explanation and section 68 provisions.
Cash Credit Explanation Issue: The Supreme Court addressed the question raised by the Revenue regarding the cash credit of Rs. 25,000 and its explanation under section 24 of the Finance (No. 2) Act of 1965. Referring to a previous case, the Court clarified that the immunity granted to a declarant under the Voluntary Disclosure Scheme does not extend to third-party assessments. The Income-tax Officer has the authority to add amounts to the assessee's income from undisclosed sources if unsatisfied with the explanation provided, despite the amounts being disclosed by depositors/creditors. Consequently, the Court allowed the appeal, withdrew the question from the High Court, and answered it in favor of the Revenue, against the assessee. Section 68 Provisions Issue: The Court's decision highlighted the Income-tax Officer's entitlement to include amounts in the assessee's income from undisclosed sources if the explanation about the genuineness of credited amounts is deemed unsatisfactory. This authority is not restricted by the declaration made by depositors/creditors under section 24 of the Finance (No. 2) Act. The Court allowed the appeal, withdrew the question from the High Court, and answered it in favor of the Revenue, against the assessee.
|
