M/s.Megha Colonizers Pvt Ltd. vs. The ITO, Ward 6(2), Jaipur

Parties Involved

Facts Summary

The assessee, M/s.Megha Colonizers Pvt Ltd., is engaged in real estate construction activities. The assessment for the year 2012-13 was completed under section 143(3) read with section 147 of the Income Tax Act, resulting in additions on account of undisclosed receipts of Rs. 20,61,169/-. The assessee challenged this order, but the appeal was dismissed by the ld. CIT (A). The assessee then filed an appeal against the dismissal order, raising grounds related to the initiation of proceedings under section 148 and the addition of undisclosed receipts. The assessee argued that the addition was unlawful as there was no evidence that the assessee received Rs.20,61,169/- over and above the sales consideration recorded in the sale deed. The assessee also claimed that the shop in question was sold to Sunil Makhwana for Rs.7,08,560/- during FY 2005-06, and the sale deed was executed on 15.03.2012 for the same amount. However, the stamp authorities adopted the value of the property for stamp duty at Rs.27,69,729/-.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in upholding the initiation of proceedings u/s 148 and the consequent order passed u/s 147?
• 2. Whether the Ld. CIT(A) erred in confirming the addition of Rs.20,61,169/- made by the AO as undisclosed receipt?
• 3. Whether the Ld. CIT(A) erred in not considering the set off of business loss and unabsorbed depreciation?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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