Maple Destinations and Dreambuild Pvt. Ltd. Vs DCIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi bench, has partially allowed an appeal filed by Maple Destinations and Dreambuild Pvt. Ltd. against a tax addition of over Rs. 27 crore made by the Deputy Commissioner of Income Tax (DCIT). The tribunal’s decision hinged on two main issues: the validity of the reassessment proceedings and the justification for the significant tax addition.
Factual Background
The case originated from information received by the Income Tax Department during a survey on the Lingaya Group. The department found that Maple Destinations had purchased a farm house in Dera Mandi, New Delhi, for a registered value of Rs. 1.2 crores (at the circle rate). However, the department believed a cash component of Rs. 5.41 crores was paid “over and above” the registered value. Furthermore, an individual named Sh. Vakamulla Chandrashekhar was said to have acted on behalf of the company and received payments of Rs. 3.2 crores, leading the Assessing Officer (AO) to doubt the genuineness of the Rs. 1.2 crore payment as well.
Based on this information, the AO initiated reassessment proceedings under Section 147 of the Income Tax Act, 1961, and issued a notice under Section 148. The company initially challenged the notice in the Delhi High Court, claiming it had not received the reasons for the reopening, but later withdrew its petition after the court confirmed the reasons had been dispatched.
