Tarun Chauhan Vs ITO (Delhi High Court)
The petitioner challenged the assessment order dated 27.03.2026 and the consequential penalty proceedings. Earlier, the Court had noted the petitioner’s contention that despite producing a duly executed Builder Buyer Agreement with M/s Max-Digi Infotech Pvt. Ltd., which showed that ₹46 lakh was still payable, the Assessing Officer (AO) added that amount to the petitioner’s income without any basis. The Court had granted time to the respondent to obtain instructions and stayed recovery proceedings as well as penalty proceedings under Section 271AAC.
Subsequently, the respondent produced instructions from the AO acknowledging that the addition of ₹46 lakh had been made on the premise that the petitioner purchased a property for ₹58.25 lakh, of which ₹12.25 lakh had been adjusted from another property and the balance ₹46 lakh remained payable to the builder. The Builder Buyer Agreement submitted by the assessee showed that only ₹12.25 lakh had been paid and the remaining amount was to be paid in the future.
In view of this position, the respondent sought setting aside of the assessment order and permission for the AO to pass a fresh assessment order. The petitioner also contended that the remaining addition of ₹12.95 lakh was unsustainable because a certificate from the builder confirmed that no cash had been received.
