Case Law Details
DCIT Vs Divine Infracon Pvt. Ltd (ITAT Delhi)
ITAT Delhi held that there are no evidence or allegation that there is receipt of money over and above sale consideration as disclosed in the sale deed, accordingly addition made on the basis of legal fiction created by section 43CA of the Income Tax Act is unsustainable in law.
Facts-
The assessee Company which is engaged in the business of running of hotels, filed its return for the A.Y. 2015-16 declaring loss of Rs. 27,83,37,701/-. The assessment proceedings have been initiated and the assessment order came to be passed on 04/06/2018 holding that, the amount of Rs. 22,93,71,100/- determined by the DVO as full value of the sale consideration received by the assessee and made an addition of Rs. 1,76,54,600/- to the total income of the assessee for the year under consideration as per Section 43CA of the Act. Consequent to the assessment order dated 04/06/2018, the penalty proceedings has been initiated against the assessee and vide order dated 30/11/2018 an order u/s 271(1)(c) of the Act has been passed by imposing penalty of Rs. 57,38,358/- .
Aggrieved by the penalty order dated 30/11/2018, the assessee has preferred an Appeal before the CIT(A). The CIT(A) vide order dated 31/10/2019 allowed the Appeal filed by the assessee by deleting the order of imposition of penalty. Aggrieved by the order of CIT(A) dated 31/10/2019, the Department is in appeal before the Tribunal.
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