Shri Ganga Four Wheels Pvt Ltd vs ITO, Ward - Sikar

Parties Involved

Facts Summary

The assessee, Shri Ganga Four Wheels Pvt Ltd, purchased the business of 'Sale and Service of Tata Commercial vehicles' at Sikar from 'Bhagwati Autowheels Pvt. Ltd, Jaipur' for a total consideration of Rs. 2,10,00,000/-. The Assessing Officer (AO) made an addition of Rs. 17,71,000/- under Section 69B of the Income Tax Act, 1961, alleging that the assessee made an unexplained investment. The assessee appealed against this addition, arguing that the AO wrongly assumed the total consideration of Rs. 2,27,71,000/- instead of the actual consideration of Rs. 2,10,00,000/- and that the addition was made without providing sufficient opportunity of hearing. The Income Tax Appellate Tribunal (ITAT) allowed the appeal, finding that the AO's addition was not substantiated by evidence and that the assessee was not given a reasonable opportunity to explain the alleged addition.…

Legal Issues

• 1. Whether the AO correctly invoked Section 69B of the Income Tax Act, 1961.
• 2. Whether the AO correctly calculated the total consideration for the purchase of assets.

Judgment Outcome

Decided in favour of Assessee.

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