The Supreme Court of India recently adjudicated a Special Leave Petition involving an alleged tax evasion of Rs.38,000 Crore, providing a period of three weeks to the Petitioner to find Rejoinder.
The Special Leave Petition filed by M/s S.N. Sodhani HUF arose from an impugned final judgment in an Income Tax Appeal before the High Court of Calcutta. The impugned order of the Calcutta High Court was filed by the Revenue under Section 260A of the Income Tax Act, 1961.
The issue surrounded an alleged connivance by accommodation entry providers in manipulating the share price of SRK Industries Ltd., facilitating round tripping of Assessee’s unaccounted money to record fictitious Long Term Capital Gains (LTCG) of Rs.19,48,385/- in favour of the Assessee. The unaccounted money was also claimed as exempt income under Section 10(38) of the Income Tax Act, 1961.
Simplify Tax Settlements with Vivad se Vishwas Insights – Click here to Register
The Revenue further contested the cancellation of the disallowance of LTCG of Rs.19,48,385/- averring the same to be a means to claim bogus exemption, by round tripping the same amounts.
A Division Bench of the High Court constituted by Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya allowed the Revenue’s contest against the order of the Income Tax Appellate Tribunal (ITAT) following the ratio laid down by the Calcutta High Court in Principal Commissioner of Income Tax Vs. Swati Bajaj (2022).
In the present case, the Division Bench of the Supreme Court comprising Justice Sanjay Karol and Justice Nongmeikapam Kotiswar Singh observed that the counter affidavit filed by the Revenue had pointed out that the tax evasion involved has an estimated revenue impact exceeding Rs.38,000 crores.
Simplify Tax Settlements with Vivad se Vishwas Insights – Click here to Register
Calling on the Revenue to file a supplementary affidavit explaining the actions taken against the erring officials who allowed the appeals to be filed before the Court after a prolonged delay, the Apex Court proceeded to pass an order requiring all the directives to be fulfilled within a period of two weeks while also providing the Petitioner to file a Rejoinder is required while listing the matter after 37 days.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
