2026 (1) TMI 1300

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....(A)-37, New Delhi dated 21.02.2020 passed in Appeal No. CIT(A), Delhi-37/10046/2018-19, pertaining to assessment year 2005-06. 2. Heard both the parties at length. Case files perused. 3. The brief facts of the case are that the assessee is an individual who had filed her original return of income under section 139 of the at an income of Rs. 32,110/-. A search and seizure action was initiated on the assessee group on 06.11.2008 u/s. 132 of the Income Tax Act, 1961 and consequently a search warrant also executed in the name of assessee. Originally this case was centralized with ACIT, Central Circle 22, New Delhi, and a notice u/s. 153A of the Act was issued on 6.11.2009. In compliance of the notice under section 153A, the assessee had f....

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.... term capital gain and an addition of Rs. 10,53,50,000/- with regard to unaccounted investment in property. Aggrieved, appeal before the Ld. CIT(A), who vide his impugned order 21.02.2020 has again partly allowed the appeal of the assessee by deleting the addition of Rs. 31,15,400/- and restricted the addition of Rs. 10,53,50,000/- to Rs. 15,75,850/-. Against the aforesaid action of the Ld. CIT(A), Revenue is in appeal before the Tribunal and Assessee has filed the Cross Objection. 4. We have heard the rival contentions and gone through the facts and circumstances of the case. The first issue in this appeal of Revenue and Assessee's Cross Objection is as regards the order of the CIT(A) restricting the addition of Rs. 15,75,850/- as again....

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....re. To be fair and reasonable, the appellant group itself had purchased adjoining property i.e. Farm House No. 2, Avenue Cassia, Rajokri, New Delhi for Rs. 29,71,600/- per acre on 09.12.2002. This property is in close proximity to the property under consideration i.e. Farm House No. 3, Avenue Jacranda, Rajori, New Delhi purchased by the appellant on 05.06.2004. Both these properties are located in Rajokri and there is a time gap of 18 months only in these two transactions. It is a fact that there was considerable appreciation in property prices in 2002-2004. Thus, some appreciation in property prices has to be loaded in while working out purchase price in hands of appellant. It is fair and responsible to estimate escalation of property pric....

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....r a sum of Rs. 60,00,000/- on 02.04.2004 and therefore, the assessee has declared STCG at Rs. 10 lacs. The AO was not agreeable to the valuation and hence, referred the same to the DVO who valued the property at Rs. 96,09,000/-. AO estimated the sale value @ 120% of Rs. 96,09,000/- i.e. Rs. 11,530,800/- after considering 20% escalation in property price. Therefore, the AO computed the STCG at Rs. 31,15,400/- and added to the returned income of the assessee. Aggrieved, assessee preferred appeal before the Ld. CIT(A), who deleted the addition by stating that simplicitor estimate without any basis and even there is no incriminating material relating to this, which can be the basis for search assessment. Ld. CIT(A) observed as under:- ....