SC upholds HC order allowing I-T to reassess income of ex-CJI's sons
The Supreme Court of India has upheld a High Court order allowing the Income Tax department to reassess the income of the sons of a former Chief Justice. The court ruled that the tax authorities had sufficient tangible evidence to justify the reopening of tax assessments for 2008-2010.
Why it matters
This case reinforces the authority of tax agencies to investigate high-profile individuals when evidence of income evasion is presented.
NEW DELHI: Holding that the income tax department is not precluded from conducting reassessment upon discovering evidence suggesting income had escaped assessment, Supreme Court upheld a Delhi high court order allowing the agency to reassess the income of the sons of former Chief Justice of India YK Sabharwal for 2008-09 and 2009-10.A bench of Justices J B Pardiwala and K Vinod Chandran dismissed the Sabharwals' appeal and said the notice issued by the department in 2015 was valid as it was based on reasons duly recorded and on tangible material of a report of its investigation unit.2015 notice of assessing officer issued on reasons duly recorded and is valid: SCRecording details of financial transactions, the Supreme Court bench noted Chetan Sabharwal along with his brother Nitin Sabharwal and two other shareholders entered into two share purchase agreements with GYS Real Estate Pvt Ltd (buyer company) for a sale of 7.5…
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