Case Law Details
Rajni Dua Vs ACIT (ITAT Delhi)
In the case of Rajni Dua vs. ACIT (Income Tax Appellate Tribunal, Delhi), the appellant, Rajni Dua, filed an appeal against the order of the Commissioner of Income Tax (Appeals) -33, New Delhi, dated August 28, 2019. The grounds of appeal included contentions regarding the proper opportunity for hearing not being provided, disregard of basic conditions for assessment under section 143(3) of the Income Tax Act, and unjustified additions to the income declared by the appellant.
The appellant, engaged in the business of manufacturing and selling Agarbatti, Dhoopbatti, and Soap, declared an income of Rs. 36,99,830 and attended all notices of hearing issued under section 143(2) of the Income Tax Act, 1961. The crux of the issue revolved around the ownership and sale of a property located at Plot No. B-190, Sector-108, Noida.
According to the appellant, the property was transferred from the allottee, Mr. Rajveer Singh, to M/s Life Time Buildwell Pvt. Ltd. through the appellant, who was a director in the company. The appellant contended that she neither purchased nor sold the property in question, and it was acquired by M/s Life Time Buildwell Pvt. Ltd. The appellant argued that the provisions of section 50C and Section 56(2)(vii) of the Income Tax Act, 1961 should not apply to the transaction.
However, the Assessing Officer added a sum of Rs. 56,38,905 to the appellant’s income, citing the difference between the registered sale consideration and the circle rate of the property as per stamp duty authorities. The Commissioner of Income Tax (Appeals) upheld the Assessing Officer’s decision, stating that the appellant failed to provide sufficient evidence to prove that the property was purchased by M/s Life Time Buildwell Pvt. Ltd.
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