CK International Pvt. Ltd. vs. Income Tax Officer, Ward 6(1), New Delhi

Parties Involved

Facts Summary

The assessee, CK International Pvt. Ltd., filed its return of income on 25.07.2020 declaring a total income of Rs.12,15,528/-. The Assessing Officer (AO) passed an order under Section 143(1) of the Income-Tax Act, 1961 on 27.10.2020, making an adjustment of Rs.14,68,000/- under the head 'Long Term Capital Gains' by adopting the stamp duty value instead of the sales consideration of the immovable property sold. The assessee appealed this order before the Commissioner of Income Tax (Appeals) (CIT(A)), which was partly allowed. Aggrieved by the CIT(A)'s order, the assessee filed the present appeal with several grounds, primarily challenging the adjustment made under Section 50C of the Act.…

Legal Issues

• 1. Whether the Joint Commissioner of Income Tax (Appeals) erred in upholding the adjustment made under Section 143(1) of the Act by invoking Section 50C of the Act.
• 2. Whether Section 50C was attracted in the facts of the present case.
• 3. Whether the property was sold at the prevailing market value.
• 4. Whether the Assessing Officer was required to refer the valuation to the Department Valuation Officer (DVO).
• 5. Whether the addition of income under Section 56(2)(vii)(b) of the Act was correct.
• 6. Whether the scope of disallowance/adjustment under Section 143(1) is very limited.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Raghvendra Singh

  Kolkata Bench benchAY 2018-2019Allowed

• Meera Sonthalia vs. ACIT, Circle-3(1), Asansol

  Kolkata Bench benchAY 2014-15Allowed

• Mrs. Geeta Narendra Gandhi Vs. ITO Ward 19(1)(1), Mumbai

  SMC Bench, Mumbai benchAY 2019-20Partly Allowed

• Aero Pack Products Private Limited Vs. Income Tax Officer

• ACIT, Circle 28 (1), New Delhi vs. Maninder Singh

  Delhi Bench ‘E’ benchAY 2015-16Dismissed

• Sh. Vijay Rai Marwaha Vs. ACIT

  Delhi Bench benchAY 2020-21Partly Allowed