Bhawani Apartment Pvt. Ltd. Vs. DCIT, Cen. Cir. 3(2)

Parties Involved

Facts Summary

The assessee, Bhawani Apartment Pvt. Ltd., purchased a property for a consideration of ₹1,42,88,000/-, which had the same stamp valuation. The assessee handed all the account payee cheques in discharge of the purchase consideration, and the seller realized the cheques to the extent of ₹39,30,880/-. Due to a dispute arising out of the property, the remaining payments of cheques were stopped by the assessee. Legal proceedings were initiated, and the dispute remains unsettled. The property has several tenants, and the difference between the purchase consideration and the actual cheques honoured was added to the income of the assessee under section 56(2)(x) of the Act without referring the issue to the District Valuation Officer (DVO) under section 55 of the Act.…

Legal Issues

• 1. Whether the addition of ₹75,57,120/- under section 56(2)(x) of the Act was correctly made without referring the matter to the valuation officer as mandated by the Calcutta High Court in Sunil Kumar Agarwal Vs. CIT.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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