ACIT(E) CIRCLE -1(1) NEW DELHI, NEW DELHI vs. HARPYARI DEVI WELFARE SOCIETY, DELHI
Income Tax Appellate Tribunal, DELHI BENCH ‘C’, NEW DELHI
Before: SH. M. BALAGANESH & SH. SUDHIR KUMAR
PER SUDHIR KUMAR, JM:
This appeal by revenue is preferred against the order of National Faceless Appeal (NFAC) Delhi [for short hereinafter referred to as the “(Ld. NFAC”] dated 24.07.2024 arising out of the assessment order of the AO dated 29-12-2019 under section 143(3) of the Income tax Act 1961,(in short “the Act”),for Assessment Year 2017-18. ACIT(E ) vs. Harpyari Devi Welfare Society Delhi
2 .The revenue has raised the following grounds in appeal:
1. On the facts and in the circumstances of the case and law.
Whether the learned CIT(A) erred in allowing the exemption under section 11 and 12 of the Income Tax Act, 1961, by overturning the AO’s decision to invoke section 13(2)( e ) despite clear evidence that the purchase price of the land exceeded twice the circle rate which indicates adequacy of price.
2. On the facts and in the circumstances of the case and law.
Whether the learned CIT(A) erred in accepting the valuation report submitted by the assessee without questioning /
verifying its accuracy or directing the Ld. AO to conduct an independent inquiry through the Department Valuation Officer
(DVO). The valuation report was not substantiated with credible evidence.
3. On the facts and in the circumstances of the case and law.
Whether the learned CIT (A) erred in accepting the assesseee’s claim that the land in question was institutional, despite the fact that the AO had rightly classified it as agriculture based on documentary evidence.
4. That the appellant craves leave to alter, amend and substitute any of the above mentioned ground and add any further ground before or at the time of hearing of the appeal.
The brief facts of the case are that assessee is a registered trust u/s 12A /12 AA of the Act. It is also registered u/s 80 G of the Act. 2017-18 on 30-10-2017. Subsequently the case of the assessee was selected for limited scrutiny under CASS and notice u/s 143(2) of the Act was issued on 18-09-2018. Thereafter notice u/s 142(1) of the Act along with questionnaire were issued. The large investment was made by the assessee in the property and assessee had purchased two lands at village Bajri and Pali for a total consideration of Rs. 7,11,90,860/-. According to the AO, the assessee had purchased the agriculture land for the consideration which is more than twice the circle rate and assessed the income of the assessee at Rs12,91,20,480/- by invoking the provision of section 13(2) € and 13(1) (c) of the Act. Aggrieved the order of the Assessing officer the assessee, preferred the appeal before the Ld. NFAC who vide his order dated 24-07-2024 partly allowed the appeal against which the revenue is in appeal before the Tribunal. 5. The Ld. Departmental representative (DR) submitted that the agriculture land was purchased more than the twice circle rate. The Assessing Officer has compared the 24 sale deed to decide the value of the purchased property which was summoned from the Sub