The Tax Publishers2020 TaxPub(DT) 1210 (Ind-Trib) : (2020) 203 TTJ 0728

INCOME TAX ACT, 1961

Section 153A Section 50C Section 69

As section 50C has not applicable to assessee-purchaser unless any document or evidence was found which could prove that unexplained investment in land had been made by the assessee over and above the purchase consideration mentioned in the registered deed, there was no justification in the action of the revenue authorities applying the valuation of the property made by the stamp valuation authority hence, addition sustained by CIT(A) was, therefore, deleted since investment was recorded in books.

Search and seizure - Assessment under section 153A - Computation of undisclosed income - Allegedly unexplained investment in land--Transaction recorded in books of assessee (purchaser)

In response to notices under section 153A assessee declared its income for assessment years 2009-10 and 2010-11 as Nil in the return filed on 20-2-2014. Assessment for the above two years were completed under section 153A read with section 143(3). After making addition of Rs. 1,30,00,000 on account of unexplained investment in land for assessment year 2009-10. Held: There was no iota of evidence placed on record which could show that any investigation had been carried out by the revenue authorities in relation to the seller of the property for the actual consideration received by him. The addition in the hands of assessee which was merely based on the Jantry rates, so far as section 50C is concerned the same is not applicable on the assessee as the assessee is purchaser whereas section 50C applies to seller. In the case of assessee the transactions of purchase of the plot of land measuring 1.05 acres was duly incorporated in the books showing that the land had been purchased for consideration of Rs. 1,20,00,000 on 21-5-2008. Apart from the purchase documents no other material was found during the course of search conducted on 20-6-2012 at the business premises of the assessee. Unless any documents or evidence was found which could prove that unexplained investment in law had been made by the assessee over and above the purchase consideration mentioned in the registered deed, there was no justification in the action of the Revenue authorities applying the valuation of the property made by the stamp valuation authority. Finding of CIT(A) was therefore, set aside and addition of Rs. 19,41,000 sustained by the CIT(A) was deleted and the AO was directed to adopt the purchase consideration of Rs. 1,20,00,000.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10 & 2010-11


INCOME TAX ACT, 1961

Section 153A Section 69B

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