INCOME TAX OFFICER WARD HINGOLI CAMP AT PARBHANI, PARBHANI vs. SUMANGAL TRADERS, PARBHANI

There is delay of 27 days in filing of the present appeal by the Revenue. We are satisfied with the reason mentioned in the application for condonation that the Revenue was prevented by sufficient cause for not filing the appeal within the prescribed time limit. Accordingly, we condone the delay of 27 days and proceed to adjudicate the appeal of the Revenue. 4. Facts of the case, in brief, are that the assessee is a registered partnership firm consisting of two partners namely (1) Kamlakar Rajaram Pant Kulkarni and (2) Shri Moreshwar Dinkar Pathak having equal share ratio in profit and loss in the firm. The firm has not furnished its return of income for the period under consideration. On the basis of information available with the Department that the assessee firm has sold land for a consideration of Rs.2,50,00,000/- whereas the stamp duty valuation of above land is Rs.3,49,54,000/-. Since no return of income was filed by the assessee partnership firm therefore there was reason to believe that income chargeable to tax in the hands of the assessee was escaped 3 assessment within the meaning of provisions of section 147 of the IT Act. After obtaining approval from the appropriate authority notice u/s 148 of the IT Act was issued to the assessee. Subsequently, notice u/s 142(1) was issued to the assessee which was duly served on the assessee through its partner Shri Kamlakar Rajaram Pant Kulkarni. The assessee firm did not comply to any of the above notices and therefore the Assessing Officer completed the assessment u/s 147 r.w.s. 144 of the IT Act and determined the taxable income of Rs.3,18,04,680/- as against no return filed by the assessee partnership firm. The above assessed income was calculated on following basis :- Sr. No. Description Amount 01. Purchase of land as discussed in para-2 above in the assessment year 2010-2011 to the extent of 16 acres 35 gunthas. Rs.91,48,640/- 02. Less: Land sold immediately in assessment year 2010-2021 Rs.28,50,000/- 03. Stock-in-trade of land to the extent of 16 acres valued. Rs.62,98,640/- 04. Value of 50% of the stock in trade sold to the extent of 7 acres 93 gunthas. Rs.31,49,320/- 05. Balance stock-in-trade still remains with the assessee to the extent of 8 acres of land amounting to Rs.31,49,320/- 06. Sale consideration of the land as discussed in para 3 abvoe. Rs.2,50,00,000/- 07. Value adopted by the State government authorities for the purpose of stamp duty which is full value of the consideration for the purpose of computing profits and gains as per provisions of section 43CA of the Income-tax Act, 1961. Rs.3,49,54,000/- 4 08. Less: cost of purchase for land sold as per column No.4 above. Rs.31,49,320/- 09. Amount of addition under section 43CA of the Income-tax Act, 1961. Rs.3,18,04,680/-

The assessee partnership firm preferred appeal before Ld. CIT(A)/NFAC & after considering the reply of the assessee Ld. CIT(A)/NFAC allowed the appeal by observing as under :- 5.17 I find that Mr. Kamlakar Kulkarni, one of the partners of the appellant firm has submitted affidavit dated 11/06/2018 to the Pr. Commissioner of Income Tax-1, Aurangabad on 11/06/2018. In the said affidavit Mr. Kamlakar Kulkarni has stated on oath that he had not received the consideration of Rs. 2,50,00,000 from Mr. Ganeshrao Dudhgoankar and Others and Sale Deed dated 20/07/2013 has been executed forcefully and his acceptance of receiving cash in front of Sub-