DCIT, NEW DELHI vs. M/S. SINDHU TRADE LINKS LTD., NEW DELHI

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ITA 1268/DEL/2014Status: DisposedITAT Delhi24 October 2017AY 2004-052 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal confirmed the deletion of the addition, holding that there is no provision to add the difference between the stamp duty value and the transacted value in the hands of the buyer. The Tribunal also noted that Section 50C applied to the seller, not the buyer, and Section 56(1)(vii)(b) was not applicable for the relevant assessment year.

What were the facts?

The Revenue appealed against the deletion of an addition of Rs. 49,22,700/- made by the Assessing Officer (AO) under Section 69C. The AO had made the addition based on the difference between the stamp duty value and the sale consideration of land purchased by the assessee.

What were the issues?

Whether the difference between the stamp duty value and the sale consideration of land can be added to the income of the buyer under Section 69C, and the applicability of Section 50C and Section 56(1)(vii)(b) in this context.

Which sections of the Income-tax Act were involved?

Section 69C,Section 50C,Section 56(1)(vii)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “G”: NEW DELHI

Before: SHRI C.M.GARG & SHRI PRASHANT MAHARISHI

For Appellant: Shri Sanat Kapoor, Adv, Ms. Soumya Singh, Adv
For Respondent: Shri Kaushlendra Tiwari, Sr. DR, Shri Sanat Kapoor, Adv, Ms. Soumya Singh, Adv
Hearing: 03/08/2017Pronounced: 24/10/2017

O R D E R PER PRASHANT MAHARISHI, A. M.

1.

This is an appeal filed by the revenue against the order of the ld CIT(A)-XI, New Delhi dated 23.12.2013 for the Assessment Year 2004-05, wherein an addition of Rs. 4922700/- was deleted pertaining to unexplained investment u/s 69C of the Income Tax Act, 1961.

2.

The brief facts of the case is that the assessee is a company who filed its return of income on 19.10.2004 for Rs. 36560010/-. The assessment u/s 143(3) was made on 20.12.2006 at Rs. 41624322/-. On appeal before the higher forum the above sum of Rs. 4922700/- was set aside by the coordinate bench to the file of the ld AO with a direction to examine the matter after conducting enquiries from the parties who have sold property to the assessee as to whether the lands were sold by them at the lower price then the value stated in sale deed for the purpose of stamp duty. Consequently the ld AO made an assessment holding that the market value of the land is higher and stamp duty has been paid on the higher value which proves that the rate of land on the relevant period are higher. Consequently he computed the addition of Rs. 4922700/-. The ld CIT(A) deleted the addition.

3.

We have carefully considered the rival contentions and also perused the relevant orders of the lower authorities as well as the direction given by the coordinate bench.

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