Dilip Patel Vs PCIT (Central) (Gujarat High Court)
In , the Gujarat High Court quashed notices issued under Section 263 of the Income Tax Act, 1961, by which the Principal Commissioner sought to revise an assessment order passed under Section 153C read with Section 143(3) for AY 2019-20.
The case arose from a search conducted on 15.10.2019 in the case of “Land Broker & Financier Group,” during which an MoU relating to sale of land was found in the mobile phone of a broker, Mr. Dhaval Teli. The MoU reflected a proposed transaction value of Rs.39.32 crore for land situated at Survey No.329. However, the transaction mentioned in the MoU did not materialize due to title disputes. Subsequently, the land was sold on 12.04.2018 to different purchasers for Rs.12 crore as per the registered sale deed.
Based on the seized material, proceedings under Section 153C were initiated against the assessee. During assessment proceedings, the Assessing Officer referred the matter to the Departmental Valuation Officer (DVO), who valued the property at Rs.28.50 crore. Relying on the DVO’s report, the Assessing Officer concluded that the actual sale consideration was higher than the documented consideration and made additions of Rs.8.25 crore in the hands of the assessee.
