Mr. Lalchand Shankarlal Sharma Vs. Income Tax Officer, Ward 1(4), Thane

Parties Involved

Facts Summary

During the relevant previous year, the Assessing Officer noticed a substantial increase in the assessee’s capital account to the tune of ₹4,13,18,753/-. Upon being called upon to explain the nature and source of this increase, the assessee could not place comprehensive material on record before the Assessing Officer. The assessee provided a brief note explaining that he had been suffering from multiple ailments over the past ten years, which necessitated repeated hospitalisations and had resulted in severe mental and emotional distress. It was pleaded that on account of such prolonged medical exigencies, he was not in a position to effectively participate in the assessment proceedings or to marshal and present the relevant documentary evidences either before the Assessing Officer or subsequently before the first appellate authority.…

Legal Issues

• 1. Addition of ₹4,13,18,753/- made by the Assessing Officer on account of an increase in the capital account.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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