Addition towards LTCG sustained as no documentary evidence of lower sale consideration furnished

Sir Shadilal Enterprises Limited Vs DCIT (ITAT Delhi)

ITAT Delhi held that addition towards long term capital gain sustained as assessee failed to furnish confirmation from the purchaser company as lower sale consideration was claimed by assessee.

Facts- Vide the present appeal, assessee contested that CIT (A) erred in law and on facts in dismissing the appeal against the order of assessing officer as adequate opportunity of being heard was not provided to the appellant. The Order passed by CIT(A) is arbitrary, bad in law and in violation of rudimentary principles of contemporary jurisprudence. Thus, order of the learned CIT (A), passed merely on surmises and conjecture should be reversed.

Assessee also contested that CIT (A) erred in law and on facts in dismissing the appeal against the order of AO and confirming the addition of Rs. 27,09,95,865/- in long term capital gain of slump sale of unit of Sugar Mill on highly presumption basis.

Conclusion- Held that the appellate has failed to furnish confirmation from the purchaser company and the documentary evidence particularly conveyance deed dated 08.09.2014 clearly revealed that the assessee received sale consideration of Rs. 75.50 crores in four installments through banking channels from the purchaser company and therefore there was no reason to interfere with the findings of Assessing Officer making impugned addition of Rs. 27,09,95,865/- to the capital gain income of assessee. In view of above, we are inclined to hold that the Assessing Officer was right in making addition in the hands of assessee and the ld. CIT(A) was also quite correct and justified in upholding the same.

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