PCIT Vs Thomson Press (India) Ltd (Delhi High Court)
Delhi High Court on July 5, 2025, dismissed an appeal filed by the Principal Commissioner of Income Tax (PCIT) against Thomson Press (India) Ltd, affirming an earlier order by the Income Tax Appellate Tribunal (ITAT). The case, pertaining to Assessment Year 2014-15, centered on an addition of ₹20 crore made by the Assessing Officer (AO) under Section 50C of the Income Tax Act, 1961, related to the sale of an immovable property.
The dispute arose from a transaction involving M/s Living Media India Limited (which later merged with Thomson Press) and M/s Maccons Infra Private Limited. A property located in Noida, measuring 20,000 square meters, was sold at ₹18,000 per square meter. A search operation conducted on the Maccons group in November 2014 uncovered the sale deed dated October 11, 2013. The AO, noting that the circle rate for the area had increased to ₹28,000 per square meter as of August 1, 2013, initiated reassessment proceedings, leading to the addition of ₹20 crore based on the higher circle rate.
Thomson Press challenged this addition before the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) ruled in favor of the assessee, finding that the addition under Section 50C was unsustainable. The CIT(A) observed that the agreement to sell between M/s Living Media India Limited and Maccons Infra Private Limited was registered on May 30, 2013, and stamp duty of ₹72 lakh was paid on the same date. At that time, the applicable circle rate was ₹18,000 per square meter, meaning the transaction value was not below the prevailing circle rate. Consequently, the CIT(A) set aside the AO’s addition.
