| Case ID |
14d5b25f-fe38-448b-a6bf-9a12cdce19fb |
| Body |
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| Case Number |
Writ Petition No. 3198 of 1998 |
| Decision Date |
Feb 11, 1999 |
| Hearing Date |
|
| Decision |
The writ petition was dismissed, affirming the Income-tax Department's authority to investigate the true amount spent on the construction of the property. The court ruled that the voluntary disclosure of income does not preclude the Department from conducting inquiries into the actual expenditures. The petitioner, who claimed to have invested Rs.10,89,000, could only explain Rs.5,42,544, and the Department's subsequent valuation estimated the construction costs at Rs.17 lakhs. The court held that if the Department determines that the investment exceeds the declared amount, it is entitled to initiate appropriate actions under the Income Tax Act against the petitioner. |
| Summary |
In the case of Smt. Shashi Devi vs. Income Tax Officer, the Madhya Pradesh High Court addressed issues surrounding the Voluntary Disclosure of Income Scheme, 1997, and the authority of the Income Tax Department to investigate declared income. The petitioner, Smt. Shashi Devi, claimed to have invested a substantial amount in constructing a property but could not fully substantiate her claims. The court emphasized that voluntary disclosures do not negate the Department's right to verify the actual expenses incurred. This case elucidates the balance between taxpayer declarations and the government's duty to ensure compliance with tax laws. Keywords such as 'Income Tax Investigation', 'Voluntary Disclosure Scheme', and 'Property Valuation' are crucial for understanding the implications of this ruling. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
Not available
|
| Judges |
R. S. Garg, J
|
| Lawyers |
B.L. Nema,
Ku. Seema Agarwal,
Abhay Sapre,
P. Shandiyal
|
| Petitioners |
Smt. SHASHI DEVI
|
| Respondents |
Income Tax OFFICER and others
|
| Citations |
2001 SLD 241,
2001 PTD 1725,
(2000) 241 ITR 216,
(2000) 82 TAX 376
|
| Other Citations |
Not available
|
| Laws Involved |
Indian Income Tax Act, 1961,
Voluntary Disclosure of Income Scheme, 1997,
Indian Finance Act, 1997
|
| Sections |
131,
64
|