Ascon Infrastructure (India) Ltd. Vs. A.C.I.T., Circle-9(1), Kolkata

Parties Involved

Facts Summary

The assessee, Ascon Infrastructure (India) Ltd., filed an income tax return for AY 2016-17 showing a total income of ₹47,32,200/-. The case was selected for limited scrutiny under Computer Assisted Scrutiny Selection (CASS). During the year under consideration, the assessee sold properties, and for some properties, there was a variation between the stamp duty value and the actual sale consideration amounting to ₹57,23,142/-. Notices under sections 143(2) and 142(1) of the Income Tax Act were issued, and the assessee furnished certain documents in response. The Assessing Officer (AO) added a sum of ₹57,23,142/- under section 43CA of the Act to the total income of the assessee, completing the assessment under section 143(3) of the Act dated 17.12.2018, assessing the total income at ₹1,04,55,342/-. Aggrieved by this order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals)-NFAC, Delhi, who dismissed the appeal. The assessee then filed an appeal before the Tribunal.…

Legal Issues

• 1. Whether the AO erred in assessing the total income at ₹1,04,55,342/- as against the returned income of ₹47,32,200/-.
• 2. Whether the AO erred in making an addition of ₹57,23,142/- under section 43CA of the Income Tax Act.
• 3. Whether the provisions of Section 43CA of the Income Tax Act are applicable to agreements entered prior to AY 2014-15.
• 4. Whether the AO erred in invoking provisions of Section 43CA for agreements entered into on or after 01.04.2013 where the difference between agreement value and stamp duty value was up to 10-11%.
• 5. Whether the CIT(A) erred in not accepting the applicability of the first proviso to section 43CA of the IT Act.
• 6. Whether the AO erred in initiating penalty proceedings under section 271(1)(c) of the Income Tax Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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