Case Law Details
ACIT Vs Sanjeev Agrawal (ITAT Indore)
ITAT Indore held that the deeming fiction created in section 50C cannot be extended to the provision of section 69 or 69B or any other of the Act in the case of purchaser to make the purchaser liable for tax.
Facts- A.O. has made addition only on the strength of copy of registered sale deed executed by Shri Amit Kumar Patni in favour of partnership firm M/s. Shiva Reality wherein the assessee was also a partner. AO noted that the assessee purchase land of 0.67 hectare situated at gram Samardha Kaliyasot on 07.09.2011, showing consideration of Rs. 35 lakh therein as against fair market value based on registrar stamp duty of Rs. 57,70,000/- .
AO show cause the assessee that why an amount of Rs. 22,70,000/- should not be treated as undisclosed investment in the purchase of From para 23 to 23.6 we note that the AO after observing the facts discernable from the register sale deed went upon to held that the firm has infused huge cash towards purchase of above land and the quantum undisclosed cash investment would not be less than the prevailing market rate or market value whichever is higher therefore he finally held that the assessee firm has made investment in land of Rs. 57,70,000/- and at the time of registry out of disclosed income and the registry was made of Rs. 35 lakhs only. The AO made addition of Rs. 22,70,000/- in hands of assessee on substantive basis and in the hands of firm M/s Shiva Reality on protective basis treating the same as unexplained investment u/s. 69B of the Act.
CIT(A) granted relief to the assessee. Accordingly, being aggrieved, revenue has preferred the present appeal.
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