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Income tax returns not an accurate guide of the real income

Cause Title : Kiran Tomar & Ors versus State of Uttar Pradesh & Anr., Criminal Appeal No 1865 of 2022, Supreme Court Of India

Date of Judgment/Order : October 31, 2022

Corum : Dr. Dhananjaya Y. Chandrachud; J., Hima Kohli; J.

Citied: NA

Background

The Family Court in a matter of maintenance of wife and child had directed the husband to pay his wife Rs 20,000 per month and Rs 15,000 each of his daughters. 

The High Court on appeal set aside the order of the family court stating :-

  1. Whereas the wife stated that the husband earns an amount of Rs Two Lakhs per month, his income tax return indicates that the husband is earning Rs 4.5 Lakhs per annum; and
  2. The Family Court had not indicated the basis on which it had assessed the income of the husband  at Rs Two Lakhs per month.

The matter reached the Supreme Court.

Judgment

Setting aside the order of the High Court and restoring the Criminal Revision to the file of the High Court of Judicature at Allahabad for consideration afresh, the Supreme Court observed that it is well-settled that income tax returns do not necessarily furnish an accurate guide of the real income. Particularly, when parties are engaged in a matrimonial conflict, there is a tendency to underestimate income. Hence, it is for the Family Court to determine on a holistic assessment of the evidence what would be the real income of the second respondent so as to enable the appellants to live in a condition commensurate with the status to which they were accustomed during the time when they were staying together.

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