Case Law Details
Bharat Vipan Garg Vs PCIT (ITAT Chandigarh)
Introduction: The Income Tax Appellate Tribunal (ITAT) Chandigarh delivered an essential judgment in the case of Bharat Vipan Garg Vs PCIT. The crux of the issue was how to treat surrendered income, specifically whether it can be treated as income from a medical profession without clear evidence to the contrary.
Background and Facts: Bharat Vipan Garg, a medical professional, appealed against an order from the Pr. Commissioner of Income Tax, Patiala, from March 21, 2022. A survey by the Income Tax Department revealed unaccounted incomes and investments totaling Rs. 70,00,000 by the assessee, which were subsequently surrendered by him.
PCIT’s Observations and Actions: The ld. PCIT pointed out the Assessing Officer’s (AO) oversight in failing to demand necessary documentary proofs that verified the nature of the surrendered income. PCIT suggested that without clear evidence of its source, the surrendered amount could be from an unexplained source, thus warranting a higher tax rate under Section 115BBE.
Assessee’s Defense
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