MASTER HOMES,ULHASNAGAR vs. ITO 2 (2), KALYAN

PDF · subscribers
ITA 4991/MUM/2018Status: DisposedITAT Mumbai16 September 2019AY 2014-154 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the matter of valuation should be referred to the DVO. The case was remitted back to the Assessing Officer for fresh adjudication, including referring the valuation to the DVO.

What were the facts?

The assessee, a builder and developer, sold immoveable properties for a consideration less than the market/stamp duty value. The Assessing Officer invoked Section 43CA and added the differential amount to the assessee's income.

What were the issues?

Whether the addition made under Section 43CA was justified without referring the valuation to the DVO. Whether the plea for DVO reference, not raised before the AO, could be considered.

Which sections of the Income-tax Act were involved?

Section 43CA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI

Before: HON’BLE SHRI MAHAVIR SINGH, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

For Appellant: Shri Neha Paranjpe-Ld. AR
For Respondent: Shri Akhtar H. Ansari-Ld.DR, Shri Neha Paranjpe-Ld. AR

आदेश / O R D E R

Per Bench: -

1.

Aforesaid appeal by assessee for Assessment Year [AY] 2014-15 contest the order of Ld. Commissioner of Income-Tax (Appeals)-3, Thane,

Master Homes [in short referred to as ‘CIT(A)’], Appeal No.10556-THN/16-17 dated 01/06/2018 on following grounds of appeal: - “1. The Ld. Commissioner of Income Tax (Appeals)-III, Thane [here in after referred to as " Ld CIT (A)"] erred in passing the order date 01-06-2018 has retained entire addition of Rs. 1801000/-. Income assessed by Ld. I.T.O. 2(2) at kalyan by taking F.M.V. of sale value in place of actual sale value & addition made by I.T.O. 2(2) at kalyan @ 1801000/- is retained & confirmed. The appellant firm is Builders & Developers.

2. Ld. C.I.T.(A-III) Thane not accepted reliance of Hon'ble Tribunal Mumbai in the case of M/S. John Power India Pvt. Ltd. V/s. DCIT ITA 7545/MUM/2014. & confirmed the addition of Ld. I.T.O. 2(2) kalyan @ Rs. 1801000/-. : 3. Ld. C.I.T.(A-III) Thane erred in not considering that difference in actual sale value & F.M.V. is even less than 10%.

4. An appeal fee payable @ Rs. 10000/- is paid challan is submitted herewith.

5. Additions made by Ld. I.T.O. & confirmed by Ld. C.I.T.(A-III) Thane @ 1801000/- is not justified may kindly be deleted.”

2.1 Facts on record would reveal that the assessee being resident firm stated to be engaged as builders & developers was assessed u/s 143(3) on 21/12/2016 wherein the assessee was saddled with addition of Rs.18.01 Lacs. 2.2 During assessment proceedings, it transpired that the assessee entered into sale transaction of immoveable properties in the shape of various shops, the details of which have already been extracted at para-5 of the quantum assessment order. It was noted that sale consideration of some of the shop was less than market value / stamp duty value. The learned A.O., invoking the provisions of Section 43CA, added the differential amount i.e. Rs.18.01 Lacs to the income of the assessee.

3.

The learned first appellate authority upheld the stand of Ld.AO, against which the assessee is under appeal before us. The plea raised by Master Homes the assessee, during appellate proceedings, that the matter of valuation should have been referred to DVO was rejected since the said plea was not raised before learned AO.

4.

We have heard and considered the rival submissions.

5.

On the given facts and circumstances, it transpires that the additions have been made merely by invoking the provisions of Section 43CA whereas the assessee has submitted that the value reflected in the books was actual sale consideration and nothing more was received over and above the reflected values. Therefore, after due consideration, the matter stand remitted back to the file of learned AO for adjudication de novo, inter- alia, after referring the matter of valuation to DVO.

6.

The appeal stands partly allowed for statistical purposes.

More judgments on Section 43CA

All 521 judgments and leading authorities on Section 43CA →

Latest GST High Court judgments

Search GST case law →