State of Karnataka v. J. Jayualalitha

The Commissioner of Income Tax vs. M.S.Aggarwal

…sham and camouflage. Genuine gifts received during the current year were un-taxable, but sham and bogus gifts would fall foul and attract correction and taxation under Section 68 of the Act. In State of Karnataka versus J. Jayalalitha and Others, (2017) 6 SCC 263, Ghose, J. in paragraph 213 of the said citation had referred to Section 68 of the Act and relied on Sumati Dayal versus Commissioner of Income Tax, Bangalore, 1995 Supp (2) SCC 453, to observe that payment by way of cheques may not per se be of consequence in all cases and circumstances. When genuineness of the transaction was examined, the…

Commissioner of Income Tax vs. Jyoti Limboo

Bench: HON'BLE MR. JUSTICE BADAR DURREZ AHMED,HON'BLE MR. JUSTICE SIDDHARTH MRIDUL

…envisaged under section 13(1)(e) of the PC Act. The test of legitimacy of the money would be the jurisdiction of the investigating agency under the latter Act. He relies upon the dicta of the Supreme Court in State of Karnataka v. J. Jayualalitha, (2017) 6 SCC 263 as well as in Vishwanath Chaturvedi (3) v. Union of India (2007) 4 SCC 380 which held inter alia “It was observed that the Income Tax Department was concerned only with the source of income and whether the tax was paid or not and, therefore, only an independent agency or CBI could, on court direction, determine the question of disproportiona…