| Case ID |
0065b723-0395-43b3-8e30-0aff88f23a82 |
| Body |
View case body. Login to View |
| Case Number |
IT REFERENCE No. 212 OF 1976 |
| Decision Date |
|
| Hearing Date |
|
| Decision |
The court found that the revenue authorities did not establish that the assessee received more than the declared amount of Rs. 3 lakhs from the property sale to the trust. Without evidence of an actual higher consideration, the application of section 52(2) of the Income-tax Act was not justified. The court emphasized that the burden of proof lies with the revenue to demonstrate an understatement of income. Since there was no finding that the sale price was understated, the assessment of capital gains was not warranted. |
| Summary |
In the case of Brijmoni Devi v. Commissioner of Income Tax, the Calcutta High Court addressed the applicability of section 52(2) of the Income-tax Act, 1961, concerning capital gains and the declaration of sale proceeds. The case revolved around the sale of a property by the assessee, who had created a trust for family members, and the revenue authorities' assertion that the property was undervalued. The court ruled that without evidence of a sale price exceeding the declared Rs. 3 lakhs, the revenue could not invoke section 52(2). This case highlights the importance of proper evidence in tax assessments and the need for the revenue to prove any claims of understatement, reinforcing the principle that the burden of proof lies with the assessing authority. The decision underscores the court's commitment to ensuring fair taxation practices and protecting taxpayers' rights against unsubstantiated claims. |
| Court |
Calcutta High Court
|
| Entities Involved |
Not available
|
| Judges |
Sabyasachi Mdkhahji, J.
|
| Lawyers |
Kalyan Roy,
R.N. Dutt,
B.L. Pal,
B.K. Nahar
|
| Petitioners |
Brijmoni Devi
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1983 SLD 1013 = (1983) 142 ITR 427
|
| Other Citations |
K.P. Varghese v. ITO [1981] 131 ITR 597 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
52(2)
|