Yashraj Real Estate Developers Pvt. Ltd. Vs Additional/Joint/Deputy/ACIT/ITO (Bombay High Court)
Summary: The Bombay High Court dealt with a writ petition filed by Shree Yashraj Real Estate Developers Pvt. Ltd. challenging the revisional order dated 27 March 2023 passed under Section 264 of the Income-tax Act, 1961, concerning Assessment Year 2018-19. The Department had received information that the assessee had registered multiple agreements showing NIL consideration although their cumulative stamp duty value was ₹4.24 crore. The assessee explained that it was redeveloping a building called “Ganesh Nivas” and had executed Permanent Alternate Accommodation Agreements (PAAAs) with existing tenants, allotting them area in lieu of their existing premises free of cost. However, after the assessee failed to respond to show-cause notices, the assessment was completed under Section 143(3) read with Section 144B, treating ₹4.24 crore as unexplained investment under Section 69.
In proceedings under Section 264, the assessee contended that it had not sold any property and that the registered documents represented PAAAs executed with existing tenants. However, it produced only copies of Index-II and did not furnish the PAAAs, MHADA permission or other supporting evidence. The Revisional Authority therefore dismissed the revision. Before the High Court, the assessee conceded that these supporting documents had not been produced but sought another opportunity to place all relevant evidence on record. The High Court observed that, considering the material actually produced before it, the Revisional Authority could not be faulted for dismissing the revision. Nevertheless, since the assessee claimed to possess evidence capable of substantiating its contentions, the Court considered it appropriate in the interest of justice to grant another opportunity. :chatgpt-content-reference{index=”1″}
