Jagmohan Singh Bedi Vs. ITO, Ward- 70(1)

Parties Involved

Facts Summary

The appellant, Jagmohan Singh Bedi, is an individual who did not file his return of income for the relevant years as his total income was below the maximum amount not chargeable to tax. He was an employee of M/s Earth Infrastructure Limited, drawing a salary of INR 20,000 per month. He was fraudulently appointed as a manager in M/s IFAMA Builders & Developers Private Limited, a group company of Earth Infrastructure Limited, but he was not involved in any business activities of IFAMA and continued to draw his salary from Earth Infrastructure Limited. The Assessing Officer (AO) held that Bedi was one of the directors of IFAMA and that the amount received in the company was taxable in his hands under section 69A of the Income Tax Act. Bedi received a notice under section 148 and filed his return declaring his salary income. Being aggrieved by the AO’s actions, he filed this appeal.…

Legal Issues

• 1. Whether the AO erred in initiating, continuing, and concluding the impugned assessment under section 147 of the IT Act.
• 2. Whether the AO erred in making an addition of Rs. 59,18,00,000/- under section 69A by holding that the assessee is the owner of the amount received in M/s IFAMA Builders & Developers Private Limited.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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