News Builders and Developers Pvt Ltd Vs ITO (ITAT Delhi)
The appeal before the Delhi Bench of the Income Tax Appellate Tribunal Delhi concerned Assessment Year 2009–10 and arose from an order passed by the National Faceless Appeal Centre confirming a reassessment made under Section 147 and an addition of ₹1.01 crore under Section 69 of the Income-tax Act, 1961. The assessee had originally filed its return declaring a loss, which was processed under Section 143(1). Subsequently, the assessment was reopened based on information received from another Assessing Officer following a search conducted in the AKN Group cases. During that search, a hard disk was seized from the premises of a deed writer, containing an unsigned and undated draft agreement to sell, which allegedly reflected cash payments of ₹1 crore by the assessee for purchase of property.
The Assessing Officer formed a belief that income had escaped assessment on the basis of this draft document and issued notice under Section 148. During reassessment proceedings, the assessee repeatedly requested copies of the appraisal report and documents relied upon, and pointed out that the draft agreement was unsigned, undated, and did not constitute a valid deed. The assessee also furnished registered sale deeds, bank statements, and detailed cheque payment records showing that all property transactions were accounted for through banking channels. It was further contended that the actual land purchased and the timing of the registered sale deeds did not match the draft agreement found in the hard disk.
