Case Law Details
Mitren Natvarlal Thakkar Vs DCIT (ITAT Mumbai)
Introduction: The Mitren Natvarlal Thakkar vs. DCIT case, recently adjudicated by the Income Tax Appellate Tribunal (ITAT) in Mumbai, sheds light on the intricacies surrounding Section 68 of the Income Tax Act. The appeal, arising from the assessment year 2016-17, challenged the addition of INR 84,06,734/- made by the Assessing Officer (AO) under Section 68. The case underscores the importance of maintaining accurate financial records and the consequences of inadvertent errors in income reporting.
Background: Mitren Natvarlal Thakkar, the assessee, filed the income tax return for the assessment year 2016-17, declaring a total income of INR 17,02,174/-. The AO initiated scrutiny proceedings, and during the verification under Section 133(6) of the Income Tax Act, discrepancies were noted in the exempted profit claimed from partnership firms. The assessee had shown exempted profit from these firms at INR 97,17,502/- in the return, but the actual share of profit was found to be only INR 13,11,128/-. The difference of INR 84,06,374/- was treated as unexplained income under Section 68.
Grounds of Appeal: The appeal raised by the assessee contested the addition under Section 68, and the grounds of appeal included:
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