PR. COMMISSIONER OF INCOME TAX, DELHI-7 vs. M/S THOMSON PRESS (INDIA) LTD.
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ITA No.192/2025 Page 1 of 6
$~20 * IN THE HIGH COURT OF DELHI AT NEW DELHI
%
Date of Decision : 02.07.2025
+ ITA 192/2025
PR. COMMISSIONER OF INCOME TAX, DELHI-7 .....Appellant Through: Mr Puneet Rai, SSC, Mr Ashvini Kumar, Mr Rishabh Nangia, Mr Gibran, JSCs and Mr Nikhil Jain, Ms Srishti Sharma and Mr Pratham Aggarwal, Advocates.
versus
M/S THOMSON PRESS (INDIA) LTD. .....Respondent Through: Mr Salil Aggarwal, Sr Advocate with Mr Uma Shankar, Mr Madhur Aggarwal, Advocates.
CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA
VIBHU BAKHRU, J. (ORAL)
CM APPL. 37712/2025 & CM APPL. 37713/2025
For the reasons stated in the applications, the delays in re-filing and filing the captioned appeal stand condoned.
The applications are disposed of. ITA 192/2025
The Revenue has filed the present appeal under Section 260A of the Digitally Signed By:TARUN RANA Signing Date:04.07.2025 13:00:29 Signature Not Verified
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Income Tax Act, 1961 [the Act], inter alia, impugning an order dated 30.06.2023 [impugned order] passed by the learned Income Tax Appellate Tribunal [ITAT] in ITA No.9342/Del/2019 captioned ACIT Circle-25 (2) v. Thomson Press (India) Limited, in respect of Assessment Year [AY] 2014- 15
The Revenue had preferred the aforesaid appeal against the order dated 27.09.2019 passed by the Commissioner of Income Tax (Appeals)– 9, New Delhi [CIT(A)] whereby the Assessee’s appeal against an order dated 05.12.2018 passed under Section 147 of the Act read with Section 143(3) of the Act was partly allowed.
The controversy in the present case relates to the addition of ₹20.00 Crores made by the Assessing Officer [AO] under Section 50C of the Act. The said addition relates to the transaction between M/s. Living Media India Limited and M/s. Maccons Infra Private Limited whereby the Vendor had sold the immovable property described as Plot No. 9, land measuring 20000 square meters located in Block-B, Sector 132, Noida, Gautam Budh Nagar, Uttar Pradesh [property in question] at the rate of ₹18,000/- per square meter. M/s. Living Media India Limited was subsequently merged with the Assessee.
Search and seizure operation was conducted under Section 132 of the Act at the residential and business premises of Maccons group on 27.11.2014. During the course of said search, the sale deed dated 11.10.2013 executed by M/s. Living Media India Private Limited in respect of the property in question was found. The circle rate of the area where the Digitally Signed By:TARUN RANA Signing Date:04.07.2025 13:00:29 Signature Not Verified
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property in question was located as on the date of the Sale Deed was ₹28,000/- per square meter and therefore, the total sale value is required to be computed at ₹56.00 Crores. This information was received by the AO. On the basis of the said information, the AO took steps for initiating the reassessment proceedings. The reassessment proceedings culminated into the assessment order dated 05.12.2018. 7. The said order was challenged by the Assessee before the CIT(A). The CIT(A) found that the addition of ₹20.00 Crores under Section 50C was not sustainable as the date on which the transaction for sale and purchase of the property in question was entered into was prior to the date of enhancement of the circle rate. It was noted that the transacting parties, that is M/s Living Media India Limited and Maccons Infra Private Limited, had entered into the registered agreement to sell on 30.05.2013 and on the same date stamp duty of ₹72.00 Lakhs was paid by the Maccons Infra Private Limited.
Undisputedly, the circle rate applicable to the property in question at the material time was ₹18,000/- per square meter and thus, the transaction entered into was not a value, which was below the circle rate. Consequently, the addition made by the AO was set aside.
It is the Revenue’s case that since circle rate had increased to ₹28,000 per square meter with effect from 01.08.2013 – which was prior to the execution of the sale deed on 11.10.2013 – the addition under Section 50C of the Act was warranted.
The learned ITAT did not accept the said contention. It noted that part Digitally Signed By:TARUN RANA Signing Date:04.07.2025 13:00:29 Signature Not Verified
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of the sale consideration was received even before the date of the transfer agreement and there was no dispute that the stamp duty had been paid on the date of the agreement to sell, that is, on 30.05.2013. Thus, the sale consideration as agreed was at the circle rates, which were applicable at the material time.
Mr. Aggarwal, the learned Senior Counsel appearing for the Assessee has also handed over a copy of the sale deed dated 11.10.2013 and has drawn the attention of this Court to the following recital in the sale deed: “And whereas, both the parties have already entered into an agreement to sell dated 30/05/2013, and the same was duly registered in the office of Sub-
