M/s. Savi Realty Holding Pvt. Ltd. Vs. Dy. Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, M/s. Savi Realty Holding Pvt. Ltd., is a company engaged in the business of real estate. For the Assessment Year 2008-09, the assessee filed an income return on 31-03-2009, admitting an income of Rs.7,45,216/-. The Assessing Officer issued notices under sections 147 and 148, and the assessee treated the filed return as a response to these notices. The Assessing Officer added Rs.2,77,47,199/- to the assessee's income based on an agreement to sell dated 12-02-2007, which was found during a search and seizure operation. The assessee contested this addition, arguing that the agreement was not executed by them and that they received only Rs.33,70,000/- as consideration for the sale. The assessee also argued that a photocopy of a document cannot be given credence over the original sale deed and that the buyer's statement cannot be relied upon without cross-examination.…

Legal Issues

• 1. Whether the Assessing Officer was justified in adding Rs.2,77,47,199/- to the assessee's income based on an agreement to sell.
• 2. Whether the Assessing Officer was justified in relying on a photocopy of the agreement to sell.
• 3. Whether the Assessing Officer was justified in making an addition based on a third-party statement without cross-examining the third party.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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