Case Law Details
Sahara City Homes Vs ITO (ITAT Lucknow)
Facts- The assessee is engaged in the business of construction and development of the township, real estate. M/s. Sahara Prime City Limited, who was one of the partners, contributed WIP to the assessee. Assessee also acquired WIP from Sahara India Commercial Corporation Ltd. (SICCL) vide MOU dated 30.03.2011.
The AO made an addition u/s 69C of the Act in A.Y. 2012-13 which comprised of the WIP acquired in the last year and addition made during the year on the ground that valuation report of WIP has not been obtained. The AO also made addition u/s 68 of the Act in respect of other items. The assessee furnished complete details of the acquisition of WIP before CIT(A). The CIT(A) called for a remand report.
AO, in the remand report, did not draw any adverse inference in respect of the details furnished by the assessee. However, the CIT(A) did not agree with the remand report observing that the valuation report of WIP was not obtained, and directed the AO to send a fresh remand report after obtaining a valuation from DVO.
AO in the second remand report stated that valuation by DVO could not be carried out because of the non-co-operation of the assessee. The CIT(A) confirmed all the additions made by the AO.
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