Taxing Income in Hands of Correct Person is Foundational: ITAT Delhi

Om Prakash Jakhotia Vs ACIT (ITAT Delhi) Income Tax Appellate Tribunal (ITAT), Delhi Bench, in the case of Om Prakash Jakhotia Vs Assistant Commissioner of Income Tax (ACIT), has emphasised the fundamental principle under the Income Tax Act, 1961, that income must be assessed in the hands of the correct person who has earned it. The Tribunal deleted significant additions made by the lower tax authorities, finding that the seized documents and the income assessed did not belong to the individual assessee but rather to the companies in which he was involved. The case originated from a search act...