Case Law Details
Ecstasy Buildcon Pvt. Ltd. Vs DCIT (ITAT Delhi)
ITAT Delhi held that addition based on DVO report regarding construction of cost of property unsustainable as DVO applied CPWD rates, however, it is settled law that State PWD rate is better guiding factor for arriving at cost of construction of the property.
Facts-
AO made addition on account of addition of Rs.65,83,992/- u/s 69B of the Act being unexplained investment in construction of property at Noida(UP), u/s 68 of the Act being Rs.1,50,00,000/- on account of share application money / share capital received from Inspire 2 Aspire Business Solutions Pvt. Ltd., addition of Rs. 1,50,00,000/- on account of the investment made by Incredible India IT Solutions Pvt. Ltd. in the assessee company; and Rs.3,00,000/- on account of addition u/s 69C of the Act, being the disallowance of commission on the share capital of Rs.3,00,00,000/- which was added as income.
Aggrieved by the additions made by AO, the assessee carried the matter before CIT(A) who dismissed the appeal of the assessee. Aggrieved against the order of CIT(A), assessee is now in appeal before this Tribunal.
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