TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 909
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....notice. 3. The Assessees have filed the respective appeals under Section 260A of the Income Tax Act, 1961 [the Act] impugning an order dated 19.01.2025 passed by the learned Income Tax Appellate Tribunal [ITAT] in ITA No. 5181/Del/2017 captioned Assistant Commissioner of Income Tax v. Snerea Properties Private Limited and ITA No. 5182/Del/2017 captioned Assistant Commissioner of Income Tax v. Shrey Properties Private Limited. 4. The Revenue had preferred the said appeals against separate orders passed by the Commissioner of Income Tax (Appeals) 27 [CIT(A)] in the respective appeals preferred by the Assessees against separate assessment orders dated 29.12.2016 passed under Section 143(3)/147 of the Act. 5. During the search proceedings co....
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.....2011-12. Since according to inspection of property of assessee and according to report etc. there is no investment made by the assessee in F.Y.2011- 12. It is further hereby stated that no investment has been made by the assessee for major changes or additions/alternations in the structures of existing building as no such work are done by assessee. This is for kind information and necessary action." 8. Although the DVO reported that no investment had been made by the Assessees during the FY 2011-12 and no major additions, changes or alterations in the structure were made during the said period; the AO proceeded to observe the market value of the Prithviraj Road Property was Rs. 150 Crores. The AO further observed that the Assessees were....
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....ncome. Thus, the assessee purchased land and sold it rather than undertaking development activity with the sole object of deriving profit out of it. It has been concluded that the income out of the transaction is the business income of the assessee company which was not recorded in the books of accounts and the sale proceeds of land as per the sales of an independent residential house parameters is taken market value Rs. 1,50,00,00,000/- as sale consideration of the said property in question. The share of the assessee company 50% taken at Rs. 75,00,00,000/- is treated as undisclosed sources of income u/s 68 of the I.T. Act, 1961 and is to be taxed as such in the hands of the assessee company. Addition of Rs. 75,00,00,000/- Penalty proc....
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....o not involved in any transaction for sale or transfer of their interest in the Prithviraj Road Property to any third party [ground number 3]. 12. The CIT(A) found merit in the aforesaid challenge and accepted the same. The relevant finding of the CIT (A) are reproduced below:- "7. I have considered the appellant's contention, carefully gone through the order of ACIT/DCIT, Central circle-18 and deliberated case laws referred by the AR of the appellant during the course of hearing before me. I have found that in the said case without any corroborative evidence only on the basis of presumption addition had been made neither assessing officer has made proper enquiry in this regard nor he has produced any corroborative evidence. 7.1 I ....
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....1U and 11UA under the Income Tax Rules, 1962 (the Rules) which provided the methodology of calculating the FMV of equity shares as per FMV method fair market value of each equity share is below face value whereas, share of assessee company has been transferred @ 25 per share. This is already surplus as per method of FMV hence, no adverse inference can be drawn under section 56 (2) (vii) of the Act." 13. The Revenue had filed appeals against the decision of the CIT(A) before the learned ITAT on the following grounds: "1. On the facts and in the circumstance of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 75 Cr. without appreciating the facts that the shares of the assessee company were transferred during the year for....
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....ng the shares of the Assessee. The Assessees reiterated their contentions before the learned ITAT that no additions under Section 68 of the Act could be made on the basis of the estimation of the market value of the property that had neither been sold or transferred by the Assessees. The transaction in regard to the Prithviraj Road Property, if any, had taken place between the shareholders by transferring the shares to the Transferee. Therefore, the income or deemed income had arisen in the hands of the transferors and not the Assessees. 15. The fundamental error committed by the AO is proceeding on the assumption that the acquisition of indirect interest in the subject property by transfer of shares or allotment of shares of the Assessees....