TaxTMI 
TaxTMI 
2025 (12) TMI 1583
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....deration assessee purchased immovable property admeasuring 18010.8 sq.m bearing Khasra No. 939 situated at Mauza Ranipokhri Grant, Pargana Parwa, Tehsil Rishikesh, District Dehradun through two sale deed being executed on 22.6.2015 for total sale consideration of Rs. 8,64,15,000/-. During the course of assessment proceedings, Assessee contended that he has purchased land for and on behalf of the society- Kulwant Kaur Kukreja Educational Society, Dehradun which was accepted by the AO while framing the assessment order u/s 143(3) on 2.11.2018 accepting returned income of Rs. 10,02,000/-. The case of the Assessee was selected for scrutiny under 'limited scrutiny' to examine issue - whether investment and income relating to properties are duly disclosed. 3.1. Subsequently, the case was later taken up for revision u/s 263 of the Act by Pr. CIT, Dehradun. The Pr. CIT Dehradun, vide order passed u/s 263 of the Act dated 26.03. 2021, set aside the assessment order passed u/s 143(3) of the Act holding the same as erroneous and prejudicial to the interest of revenue as per para no. 2 of the said order passed u/s 263 of the Act with direction to the A. O. to pass a fresh assessment....
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....on Society in the name of the Assessee and the Assessee is not the real owner of the property. To substantiate his claim,Assessee has relied on the agreement/Memorandum of Understanding dated 21/12/2018, therefore, submitted that both the Lower Authorities have committed grave error in making/confirming the addition which deserves to be deleted. The Ld. Counsel has taken us through the document produced in the Paper Book and made elaborate submissions, which were duly consider. 5. Per contra, the Ld. Ld. Departmental Representative submitted that the property has been registered in individual capacity of the Assessee and the Revenue documents are still stands in the name of the Assessee not in the name of Kulwant Kukreja Education Society and the A.O. has rightly made addition u/s 56(2) (vii) of the Act which requires no interference at the hands of the tribunal. The Ld. Department's Representative relying on orders of the Lower Authorities sought for dismissal of the Appeal. 6. We have heard both the parties and perused the material available on record. During the year under consideration, two sale deeds came to be executed on 22/06/2015 and 24/06/2015 by Madan Pal Singh....
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.... (c) any property, other than immovable property. (i) without consideration the aggregate fair market value of which exceeds fifty thousand rupees. the whole of the aggregate fair market value of such property. (ii) for a consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, the aggregate fair market value of such property as exceeds such consideration Provided that where the stamp duty value of immovable property as referred to in sub-clause (b) is disputed by the assessee on grounds mentioned in sub-section (2) of section 50C, the Assessing Officer may refer the valuation of such property to a Valuation Officer, and the provisions of section 50C and sub section (15) of section 155 shall, as far as may be, apply in relation to the stamp duty value of such property for the purpose of sub-clause (b) as they apply for valuation of capital asset under those sections Provided further that this clause shall not apply to any sum of money or any property received (a) from any relative, or (b) on the occasion of the marriage of the individual, or (c....
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....f the revenue, since, the AO has not examined the issue during the assessment proceedings. The AO has not called for the bank account from which the payments of Rs. 8.64, 15,000/- were made to the seller, Sh. Madan Pal Singh to verify whether the payments were made by the assessee from his individual bank account or from the bank account of Kulwant Kaur Kukreja Educational Society. The claim of the assessee that the land was purchased on behalf of the society was not correctly examined by the AO during the assessment proceedings. The AO has also not examined the violation of the provisions of Section 13(1)(c) of the I. T. Act which prohibits any trust/society from diverting its income directly or indirectly for the benefit of any person referred to in Sub-Section (3). He, therefore, issued a show cause notice asking the assessee to explain as to why the order passed by the AO should not be revised u/s 263 of the I.T. Act, since, the order is erroneous and prejudicial to the interest of the revenue. Rejecting the various explanation given by the assessee and relying on various decisions, the Id. PCIT cancelled the Assessment Order passed by the AO with a direction to pass a fresh As....