The Joint Commissioner of Income Tax (OSD), Pune. Vs Suresh Kumar Lakhotia

Parties Involved

Facts Summary

Suresh Kumar Lakhotia filed an appeal against the order of the Commissioner of Income Tax (Appeal) under section 250 of the Income Tax Act, 1961 for the Assessment Year 2018-19. The Revenue raised grounds of appeal regarding the assessee's contention that the additional capital introduced in AY 2018-19 represents accumulated capital from disclosed income between AY 2006-07 to AY 2017-18. The assessee submitted that for the first time in AY 2018-19, he clubbed his personal balance sheet with the balance sheet of his proprietary concern and presented it as one single balance sheet in the return of income. The assessee argued that the difference between the closing balance of A.Y.2017-18 and the opening balance of A.Y.2018-19 was due to the clubbing of the balance sheets. The assessee provided documentary evidence such as details of income from AY2006-07 to AY2017-18, CA certified personal balance sheets, copies of wealth tax returns, and supporting documents of assets/investments acquired.…

Legal Issues

• 1. Whether the additional capital introduced in AY 2018-19 represents accumulated capital from disclosed income between AY 2006-07 to AY 2017-18?
• 2. Whether the assessee erred in holding that no statutory provision in the Income Tax Act requires disclosing personal balance sheets?
• 3. Whether the assessee provided sufficient evidence for the source of additional assets?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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