Case Law Details
ACIT Vs Dianco (ITAT Surat)
ITAT Surat held that addition under section 56(2)(x) on the Income Tax Act unsustainable as addition made in casual manner without considering payment made on account of various amenities.
Facts- The assessee is a firm, engaged in the business of buying and selling real estate properties. The assessee filed its return of income declaring NIL income. The case was selected for scrutiny. During the assessment, AO noted that the assessee has purchased two flats. AO on the basis of area of flats worked out the cost and was of the view that the assessee has made excess payment against both the flats and worked out the difference of the alleged excess payment of Rs. 85,72,204/-. AO further noted that at the time of execution of transfer deed, there was a difference in the value adopted by Stamp Valuation Officer and the value declared by the assessee with regard to both the flats.
CIT(A) allowed the appeal. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that the Assessing Officer has not gone into such basic details and made addition in a casual manner without understanding the nature whether such addition could really be made and deleted the addition. We find that the ld. CIT(A) appreciated the facts of the case in a proper perspective. The Assessing Officer while making the addition has not considered the payments made on account of various amenities like electricity connection, water connection, common facilities of various amenities provider by the builder/developer.
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