Marvel Infrabuild Private Limited Vs ITO (ITAT Bangalore Bench)
Section 28(iv) Finds ₹8.23 Crore Benefit Buried In Land—₹9.80 Crore Property Bought For ₹1.58 Crore Was A Non-Cash Perquisite
An old agreement reveals a much higher land value
The assessee, a real-estate developer, purchased land measuring approximately 1 acre & 20 guntas in Sy. No. 139, Channasandra Village, Bengaluru, from Shri K.V. Prashanth.
Under the registered sale deed dated 04.04.2013, the purchase consideration was recorded at ₹1,57,50,000.
The assessee also entered into joint development arrangements & paid Shri Prashanth an interest-free refundable security deposit of ₹8,93,50,000.
During a survey u/s 133A conducted on 20.09.2016, the Department found an earlier unregistered agreement dated 12.07.2012 concerning the same property. Under that agreement, Shri Prashanth had agreed to purchase the property from Ms. Jayamma & others for ₹9,80,10,000.
The agreement recorded that ₹2 crore had already been paid, while the balance was payable within 90 days after production of the property documents.
Seller’s statement supports the higher consideration
Shri Prashanth’s statement was recorded u/s 131. He confirmed that, apart from the consideration appearing in the registered instrument, he had paid substantial amounts to the original landowners & confirming parties.
He furnished details showing account-payee cheque payments of approximately ₹3.42 crore to Ms. Jayamma & others.
