Case Law Details
Dabur India Ltd Vs ACIT (ITAT Delhi)
In the case of Dabur India Ltd vs ACIT (ITAT Delhi), the appeal arose from the assessment year 2011-12, following a reassessment initiated by the Assessing Officer (AO) under section 147/143(3) of the Income-tax Act, 1961. The primary issue revolved around the reassessment validity and adjustments made to the capital gains arising from the sale of immovable property.
Dabur India Ltd, engaged in manufacturing and trading herbal and FMCG products, originally filed its return declaring an income of Rs. 253,24,04,903 for the year. Subsequently, the AO completed a regular assessment under section 143(3), determining the total income at Rs. 296,28,03,260 after certain adjustments.
The AO later reopened the assessment for the same year, citing information received regarding the sale of immovable property and the disparity between the sale value and the stamp duty value, invoking section 147. This move was contested by Dabur India Ltd, arguing that the reassessment was time-barred and beyond the permissible four-year period from the original assessment.
The grounds of appeal by Dabur India Ltd included objections to the application of sections 50C and 43CA of the Income-tax Act to enhance the sale consideration of immovable assets, the timing of capital gain calculation concerning the receipt of sale consideration versus registry, and the incorrect computation of book profit under section 115JB. Furthermore, they contested the disallowance of setting off long-term capital gains with losses from previous years and the imposition of interest under sections 234A and 234B.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
