AILA INFRASTRUCTURE PRIVATE LIMITED,MAHARASHTRA vs. INCOME TAX OFFICER, MUMBAI

ITA 371/MUM/2024Status: DisposedITAT Mumbai16 May 2024AY 2013-2014Bench: SHRI ANIKESH BANERJEE (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that Section 50C of the Act and Sections 69/69B are contrasting, with the former being a deeming fiction and the latter evidence-based. The AO cannot estimate unaccounted investment under Section 69B without evidence of actual expenditure beyond recorded amounts.

What were the facts?

The assessee company purchased an immovable property, showing an addition to fixed assets at Rs. 26,09,600/- while the stamp duty valuation was Rs. 1,06,89,500/-. The Assessing Officer (AO) made an addition of Rs. 86,14,400/- under Section 69 of the Act, which was later reclassified to Section 69B by the CIT(A).

What were the issues?

Whether the addition made under Section 69/69B for unexplained investment in property is sustainable when the AO relies on stamp duty valuation without proving actual expenditure beyond recorded amounts.

Which sections of the Income-tax Act were involved?

Section 69,Section 69B,Section 50C,Section 56(2)(x)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, MUMBAI BENCH “A”, MUMBAI

Before: SHRI ANIKESH BANERJEE & SHRI GAGAN GOYAL

For Appellant: Shri M.M. Golwala & Ms. Aruna Aiyar, Ld. AR
For Respondent: Shri Manoj Kumar Sinha, Ld.DR
Hearing: 09/05/2024Pronounced: 16/05/2024

PER GAGAN GOYAL, A.M: This appeal by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC), Delhi dated 20.12.2023 u/s. 250 of the Income Tax Act, 1961 (in short ‘the Act’) for A.Y. 2013-14. The assessee has raised the following grounds of appeal: -

“GROUNDS OF APPEAL”

This Appeal is against the Order passed by Commissioner of Income-Tax (Appeals). NFAC, and relates to the Assessment year 2013-2014. 1) The learned Commissioner of Income Tax (Appeals) erred in confirming the addition made under section 69 or under section 69B amounting to Rs. 86, 14,400/-

2) Both the lower authori

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 69

All 9,011 judgments and leading authorities on Section 69 →

Recent GST High Court judgments

Search GST case law →