Income Tax Assessments Must Rely on Cogent Evidence, Not Assumptions: Delhi HC

Rohit Gandhi Vs ITO (Delhi High Court) Delhi High Court held that the Income Tax Assessments must be based on cogent evidence rather than assumptions. Overview of the case: The Delhi High Court set aside the addition of ₹58,00,100 to the assessee’s income, which was made on account of alleged undisclosed investment in artworks. The Court held that the assessee had duly discharged the burden of proof by establishing the identity and creditworthiness of the donors, as well as the genuineness of the gifts received. It was observed that the addition was based on arbitrary valuation and unsupp...