9911796707
TMI Blog2023 (12) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... st and capital gains. For the A.Y. 2014-15 in question, the assessee filed return of income declaring total income at Rs. 32,81,01,050/-. The return filed by the assessee was subjected to scrutiny assessment. In course of the scrutiny assessment, the Assessing Officer observed that the assessee company has inter alia earned Long Term Capital Gains on sale of property situated at B-35, Sector-132, Greater Noida. The property was sold to M/s. UTC Softech Pvt. Ltd. (UTC) for a stated consideration of Rs. 36,00,76,400/-. A search and seizure under section 132 of the Act was conducted on 10.10.2013 on Urbtech Group including the purchaser of the property M/s. UTC Softech Pvt. Ltd. (earlier known as Suntar Properties (P.) Ltd.). Certain loose papers, diary, documents were inter alia seized in the search. The AO of the purchaser vide his letter dated 26.02.2016 exchanged the information to the AO of the assessee along with copies of the relevant documents pertaining to the assessee herein. 3.1 On perusal of seized documents seized, the Assessing Officer observed that real sale consideration agreed stands at Rs. 40,00,00,000/- towards the sale of aforesaid property at B-35, Sector-132, Gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel of the appellant filed the detailed submissions and other documentary evidences to rebut the observations of the Assessing officer as noted in the order of assessment. It is stated that the Assessing Officer provided the assessee two copies of the documents seized during the search. It is explained that on the 36 perusal of the document No.54 seized by Party A-6, it is amply clear that the deal in question was for Rs. 36,00,76,400/-, which is same as per Registered Sale Deed and also on the basis of which capital gain in question was worked out. The said seized document was precise containing the working on the basis of which land under sale measuring 20116 sq. mtrs. @ Rs. 17,900/- per sq. metre tallies with the actual sale consideration of Rs. 36,00,76,400/-, which is shown in the Registered Sale Deed. It is further stated that the said seized paper contains the details of the working of the stamp duty of Rs. 1,80,04,000/- and this value reconciles with the value on actual stamp paper of Rs. 1,80,04,000/- as per Registered Sale Deed. The seized document proves the authenticity and veracity of the registered sale deed and the sale consideration at Rs. 36,00,76,400/-, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to appreciate that Assessing Officer has put all efforts to justify his action; the copy of loose papers/dairy/document found at the premises of the purchaser showing the same property (B-35, Sector-132, Greater Noida) received from the AO of the purchaser was duly confronted to the assessee; a summon was also issued to the purchaser of the property; the assessee failed to file any defense but raised counter enquiry like copy of panchnama and copy of statement of Director of searched person; the summon under section 131 issued upon the purchaser was also not complied with (c) the CIT(A) overlooked the categorical loose paper no. 15 to Annexure-A62 seized from the premises of Urbtech Group; the loose paper clearly reflects the calculation and working including sale consideration of Rs. 40,00,00,000/-; the reliability of loose paper no.15 is also vindicated by the fact that payment made up to certain period were also found reflected and certain payments by one Mr. Deepak Tyagi was also shown (d) the CIT(A) has acted in undue haste and accepted version of the assessee without seeking any remand report and without making any enquiry on such overriding factual aspects and casually in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been done by the AO in the instant case. The Learned Counsel thus submitted that the action of the CIT(A) cannot be faulted and no interference therewith is called for. 8. We have carefully considered the rival submissions and perused the assessment order and the First Appellate order. The material referred to and relied upon in course of hearing has been carefully perused in terms of Rule 18(6) of the Income-tax Appellate Tribunal Rules, 1963. The controversy in the present case relates to additions on account of understated sale consideration on sale of property by the assessee in the factual matrix. The issue is essentially factual in nature and is thus wholly dependent upon the examination of facts threadbare. 8.1 The Assessing Officer in the course of assessment relied upon a loose paper no.15 found from the possession of the purchaser at the time of search which reflected the sale consideration to be Rs. 40,00,00,000/- as against Rs. 36,00,76,400/- declared by the assessee. Based on material seized from the possession of the purchaser, the AO confronted the loose paper/document no.15 and also another loose paper/document no.54 to the assessee. The explanation of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... powers of an adjudicating authority similar to that of an AO. The powers of enquiry thus in a sense, runs concurrently. Proper appreciation of all material placed before him was incumbent in law. The CIT(A) ought to have made suitable enquiries on the proprietary of sale consideration declared in the light of document seized instead of brushing aside the action of the AO in a lopsided manner. 12. In our considered view, the order of CIT(A) lacks comprehension. The CIT(A) has omitted to expound the facts in perspective while displacing the order of AO. The fallacy in action of the CIT(A) is quite visible and hence the impugned first appellate order cannot be countenanced in law. 13. The appellate order of the CIT(A) is thus set aside and matter is restored back to the file of the CIT(A) for fresh determination of the issue in accordance with law after making enquiries or causing enquiry through the AO in this regard. The assessee shall be given suitable opportunity to adduce evidence and offer explanation as may be considered expedient to defend its claim. 14. With these observations, appeal of the Revenue is allowed for statistical purposes. Order was pronounced in the open co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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