Savera Construction Private Limited vs. Asstt. C. I. T.

Parties Involved

Facts Summary

The assessee company, Savera Construction Private Limited, engaged in real estate and investment activities, did not file its return of income for the Assessment Year 2011-12. A search and seizure operation was conducted on 09/11/2017, and incriminating material pertaining to the assessee was found. A notice under section 153C of the Income Tax Act, 1961 was issued on 31/05/2019, and the assessee filed a return declaring 'nil' income on 08/11/2019. The Assessing Officer noticed that the assessee had sold land for Rs. 60.00 lakhs, whereas the stamp duty value was Rs. 5,32,40,000/-. The assessee argued that the property was under civil suit and thus, no capital gain arose. The Assessing Officer made an addition of Rs. 5,32,40,000/- as undisclosed income.…

Legal Issues

• 1. Whether the Assessing Officer was right in making an addition of Rs. 5,32,40,000/- as undisclosed income towards the sale of property?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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