ACIT, NEW DELHI vs. SH MAHAGUN REALTORS PVT. LTD.,, DELHI
Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI
Before: Sh. Satbeer Singh Godara & Sh. S. Rifaur Rahman
Per Satbeer Singh Godara, Judicial Member:
These Revenue’s appeal and assessee’s cross objection ITA
No. 3664/Del/2012 and CO No. 300/Del/2012 for Assessment
Year 2006-07, arise against the CIT(A)-II, Delhi’s order dated
30.04.2012 in case No. 76/11-12, in proceedings u/s 153A r.w.s. 143(3) of the Income Tax Act, 1961 (in short “the Act”).
CO No. 300/Del/2012
Mahagun Realtors Pvt. Ltd.
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2. Heard both the parties at length. Case files perused.
The Revenue’s instant appeal ITA No. 3664/Del/2012 raises the following substantive grounds:
“1. That the Commissioner of Income Tax (Appeals) erred in law and on facts of the case in deleting the addition of Rs.29,35,260/- made u/s 50C/69C of the Income Tax Act,
1961 in respect of investment in purchase of property at B-41, Chander Nagar, Ghaziabad without appreciating the fact that the real investment exceeds the investment shown in the assessee’s books of accounts.
That the Commissioner of Income Tax (Appeals) erred in law and on facts of the case in deleting the addition of Rs.6,05,71,018/- made on account of apportionment of suppressed sales/receipts as worked out on the basis of seized material and the statement of the Director of the company recorded u/s 132(4) of the Income Tax Act, 1961 and as worked by the Special Auditors.
That the Commissioner of Income Tax (Appeals) erred in law and on facts of the case in deleting the addition of Rs.4,64,576/- made u/s 14A of the Income Tax Act, 1961 read with Rule-8D of the Income Tax Rules, 1962. 4. (a) The order of the CIT (A) is erroneous and not tenable in law and on facts.”
We advert to the first and foremost issue of section 50C/69C addition amounting to Rs.29,35,260/- made by the Assessing Officer in his assessment framed on 11.08.2011 and reversed in the lower appellate findings. The same admittedly represents the difference between the assessee’s actual purchase price of the asset herein amounting to Rs.30,00,000/- CO No. 300/Del/2012 Mahagun Realtors Pvt. Ltd.
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as against circle rate thereof to the tune of Rs.59,35,260/- charged by the sub-