Snerea Properties Pvt. Ltd. Vs ACIT (Delhi High Court)
Delhi High Court held that in absence of transfer of title or sale of property, no incidence of tax can be invoked. Accordingly, addition u/s. 68 on account of sale not justifiable in absence of any transfer. Hence, appeal of revenue dismissed.
Facts- During the search proceedings conducted in the case of Aerens Group of Companies, a Memorandum of Understanding [MoU] was found and seized from the residence of one Sh. Surender Kr. Gupta. The said MoU reflected that 50% of the share in the property, which was jointly held by the Assessees had been transferred to M/s Om Shivay Real Estate Private Limited [Transferee] during the Financial Year [FY] 2010-11. The information indicated that the market price of the Prithviraj Road Property was estimated at around ₹150 Crores, however, the transactions were conducted at a value of ₹5 Crores each.
On the aforesaid basis, the assessments of the Assessees were reopened by issuance of a notice u/s. 148 of the Act on 01.04.2015. AO observed that the Assessees were dealing in the real estate, therefore, the entire consideration for the Prithviraj Road Property was required to be treated as income from the undisclosed source u/s. 68 of the Act. CIT(A) accepted the appeal and dismissed the addition. Being aggrieved, revenue has preferred the present appeal.
