Amit Sabharwal Vs. Asst. Director of Income Tax

Parties Involved

Facts Summary

The assessee, Amit Sabharwal, filed his Income Tax Return (ITR) for the Assessment Year 2019-20 declaring income of Rs.62,43,461/-. He showed Long Term Capital Gains of Rs.46,23,385/- on the sale of immovable property in Noida for a sale consideration of Rs.1,58,43,750/- as against the circle rate of Rs.1,94,95,000/-. The Assessing Officer (AO) made an adjustment of Rs.36,51,250/- under section 143(1)(a) of the Income Tax Act, 1961, by taking the sale consideration and circle rate at Rs.1,94,95,000/- instead of Rs.1,58,43,750/-. The assessee filed an objection, but the AO did not take cognizance and made the adjustment. Aggrieved, the assessee filed an appeal before the Additional/Joint Commissioner of Income Tax (Appeals)-5, Chennai, who dismissed the appeal. The assessee then filed an appeal before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the addition/adjustment of Rs.36,51,250/- made under section 50C(1) of the Income Tax Act, 1961 can fall within the ambit of adjustments provided under section 143(1)(a) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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