Case Law Details
Shiv Kumar Nayyar Vs DCIT (ITAT Delhi)
In a significant ruling, the Income Tax Appellate Tribunal (ITAT) Delhi sided with Shiv Kumar Nayyar in his appeal against the decision of the Commissioner of Income Tax (Appeals)-27, New Delhi, regarding the Assessment Year 2007-08. The core of the dispute revolved around the addition of ₹6,91,875 as income from undisclosed sources linked to Nayyar’s investment in a real estate project.
Background of the Case: The dispute originated from the Assessing Officer’s (AO) decision to add ₹6,91,875 to Nayyar’s income for the Assessment Year 2007-08, categorizing it as income from undisclosed sources. This addition was based on Nayyar’s cash investment in an AEZ group project in Indrapuram Habitat Centre, Ghaziabad, which the AO deemed unexplained.
Issues In Hand: The primary issue at hand was whether the investment made by Nayyar could be considered as income from undisclosed sources, warranting an addition to his taxable income under the provisions of the Income Tax Act, 1961.
Contention of the Assessee: Nayyar contended that the cash in hand, utilized for the investment, was derived from legitimate sources, including:
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