Can an assessee be taxed for a hypothetical income that was neither earned nor received, but was filed in the tax return by mistake?

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Last updated: 07 June 2021
Quick Summary
This case concerns an assessee who was taxed on an alleged undisclosed sale of Rs. 77,00,063. The Assessing Officer (AO) made this addition based on a discrepancy between the turnover declared in the income tax return and the turnover reported to the Service Tax Department. The assessee argued that they only earned income from labour supply services and that the higher figure reported to the Service Tax Department was an error.

Court :
ITAT Ahmedabad

Brief :
The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals), Gandhinagar (‘CIT(A)’ in short), dated 06.11.2017 arising in the assessment order dated 28.12.2016 passed by the  Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 the Act) concerning AY 20142-15.

Citation :
ITA 802/AHD/2018

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