Tushar Enterprises Vs ITO (ITAT Mumbai)
Facts- Tushar Enterprises purchased Gala No. 4, Ground Floor, Satyam Industrial Estate, Jogeshwari (East), Mumbai on 09.08.1995 for ₹12 lakh and entered into a Memorandum of Understanding on 05.02.2004 to sell it to Mr. Prakash Bhagwan Canser for ₹12.51 lakh, receiving ₹3 lakh on 03.01.2004 and agreeing to hand over possession on 31.03.2004.
At the time of the MoU, the property was mortgaged to Bank of Maharashtra as collateral for credit facilities of another company, with the MoU stipulating that the lien would be cleared before executing the sale deed.
The lien was released by the bank only on 26.10.2010, and a registered sale deed was executed on 09.12.2010, with the remaining consideration (more than 50% of the total) paid in FY 2010-11.
On receiving information that the property was sold below market value and no return was filed, the Assessing Officer issued notice under section 148 on 08.03.2016 and initiated reassessment under section 147; the assessee contended that the transfer occurred in AY 2004-05.
As the sale consideration was lower than the stamp duty value, the AO invoked section 50C and referred the matter to the DVO, who valued the property at ₹20,57,000 as on 05.02.2004.
