DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, , LUDHIANA vs. HOMELIFE BUILDCON PVT. LTD., LUDHIANA

Order

PER KRINWANT SAHAY, AM:

3. Whether upon facts and circumstances of the case and in law, the Ld. CIT(A) was justified in relying on its own order for A.Y. 2021-22 wherein Ld. CIT(A) relied upon the decision of Hon'ble Punjab and Haryana High Court in the case of V.M. Spinning ills reported in (2011) 16 taxmann.com 199 to deny the benefit of extrapolation as facts of the case of assessee differ from the referred case and AO has relied on the additional evidence and investigation to come to conclusion that the assessee is indulging in large scale undervaluation and hence extrapolation is required? Whether upon facts and circumstances of the case and 4. in law, the Ld. CIT (A) was justified in deleting the addition of Rs. 52, 83, 500/- made by the A. O on account of unaccounted sale of SCOs on the basis of logical & rational extrapolation based on evidences. Whether upon facts and circumstances of the case and 5. in law, the Ld. CIT(A) was justified in deleting the addition of Rs. 9, 87, 62, 864/-made by the A.O on account of unexplained investment made for the purchase of agriculture lands from M/s Trimurti Homes Private Limited on the basis of seized documents pertains to other assessment year? Whether upon facts and circumstances of the case and 6. in law, the Ld. CIT (A) has failed to appreciate the facts of the case as well as seized documents of Sh. Gurmeet Singh C/o Ajay Prabhakar which establish that the rate of the agriculture lands is much higher than their registered sale value?

7. The appellant craves leave to add, amend, modify, vary, omit or substitute any of the aforesaid grounds of appeal at any time before or at the time of hearing of appeal."

as taken by the Department are identical to the appeal 3 of the assessee and Department for Asstt. Year 2021-22, the matter has come up before us in ITA No. 880/Chd/2020(A). The appeal of the Department in was dismissed, the order was pronounced on 17.07.2025, and the appeal of the assessee was allowed.

4. Briefly, the issue is on account of the extrapolation of the sale rate of the residential plots and receipt of on money. For it on the basis of certain enhanced valuation as made by the plot holders for submitting it to the Bank for advances for construction of house. Plots were sold by the assessee during the year under consideration, the enhanced rate was applied by the AO and that was deleted by the CIT(A), as there was no incriminating evidence found during the year under consideration. Similarly, certain unaccounted income on account of sale of SCO was made by the AO during the year under consideration for 4 SCOs and on that basis addition was made. Valuation was got done by the buyers of the SCO, for raising loan from the financial Institutions at enhanced rate. That basis was taken as the rate at which, the SCO could have been sold and, accordingly, the addition was made. Similarly, during the year under consideration, certain agricultural land was purchased by the assessee from M/s Trimurti Homes Pvt. Ltd. The Assessing Officer by relying upon certain evidence for purchase of agricultural land in the case of one Sh. Gurmeet Singh for Asstt. Year 2021-22 had extrapolated the rate of the purchase of agricultural land in Asstt. Year 2021-22 and the AO during the year under consideration applied the same rate, which was adopted in Asstt. Year 2021-22.

5. The Ld.CIT (A) while deleting the addition followed his own order for Asstt. Year 2021-22 as per his finding at pages 31 to 35 of the order, deleted the entire addition. In the order. The Department has filed appeal raising identical grounds of appeal as they were taken in Asstt. Year 2021-22. The appellant had filed a chart before us that how each and every ground is covered by the order of Hon'ble ITAT for Asstt. Year 2021-22 in ITA No. 880/Chd/2024 (A) and in ITA No. 1036/Chd/2024 (D).

Issue Relevant Amount of Amount of Relevant Relevant page of involved ground No. of addition addition page No. decision taken by departmental made by the deleted by of CIT(A) the Hon'ble ITAT for appeal AO. the Ld.CIT(A) order AY 2021-22 in before ITAT and Unaccounted 1-3 34,28,91,060 34,28,91,060 21-32 Page 26-32 sale of Para 36-39 residential plots and receipts of on money Unaccounted 4 52,83,500 52,83,500 32-35 Page 36 Para sale of SCOs 46-47 Unexplained 5-6 9,87,62,864 9,87,62,864 35 Page 37-40 . investment Para 48-51 made for purchase of agricultural land from M/s Trimurti Homes Pvt. Ltd. on the basis of third party evidence 6. The Ld. DR relied upon the order of AO.