| Case ID |
e34a71bc-f880-475f-b027-273940bcefd7 |
| Body |
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| Case Number |
IT REFERENCE No. 1 OF 1968 |
| Decision Date |
Aug 01, 1978 |
| Hearing Date |
Aug 01, 1977 |
| Decision |
The Bombay High Court held that the burden of proof regarding the source of acquisition of undisclosed investments lies with the assessee. In this case, Gopaldas T. Agarwal, as the legal heir of Tulsiram Devidayal, failed to satisfactorily demonstrate the origins of the assets attributed to his deceased father. The court emphasized that the specifics of each case dictate the nature of the burden of proof, and in this instance, the evidence presented was insufficient to substantiate the claims made by the assessee. The court affirmed the Tribunal's decision that the income of Rs. 1,50,000 was rightly included in the total income of the deceased, highlighting the ambiguity surrounding the tracing of jewellery and the lack of credible evidence to support the claims of inheritance. |
| Summary |
In the landmark case of Gopaldas T. Agarwal v. Commissioner of Income Tax, the Bombay High Court deliberated on the implications of Section 69B of the Income-tax Act, 1961, which pertains to undisclosed investments. The case arose from an assessment year of 1957-58, where Gopaldas, the legal heir of the deceased Tulsiram, contended that certain undisclosed amounts were inherited from his father. The Income Tax Officer rejected this assertion, leading to a series of appeals. The Tribunal and subsequently the High Court ruled that the burden of proof lay with the assessee to explain the source of the investments. The court found that Gopaldas could not satisfactorily establish the origins of the assets in question, ultimately ruling in favor of the revenue. This case underscores the critical importance of clear documentation and credible evidence in tax assessments, particularly in matters involving inherited assets. Keywords: Income Tax, Burden of Proof, Undisclosed Investments, Legal Heir, Tribunal, High Court. |
| Court |
Bombay High Court
|
| Entities Involved |
|
| Judges |
Kantawala, C.J.,
Tulzapurkar, J.
|
| Lawyers |
S.E. Dastur,
D.H. Dwarkadas,
R.J. Joshi,
V.J. Pandit
|
| Petitioners |
Gopaldas T. Agarwal
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1978 SLD 655 = (1978) 113 ITR 447
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
69B
|