2011 (11) TMI 650 - AT - Income Tax

Summary

Issues involved: Appeal against deletion of addition made u/s 69B read with section 142A of the Income-tax Act, 1961.

Issue 1: Addition u/s 69B read with section 142A

The revenue appealed against the deletion of an addition of Rs. 2,81,83,000/- made by the AO u/s 69B read with section 142A. The AO had added this amount based on a property purchase by the assessee, which was valued differently by the Departmental Valuation Officer (DVO). The ld. CIT(Appeals) deleted the addition, stating that the AO did not have sufficient evidence to show that the purchase consideration was understated, as required by section 69B. The ld. CIT(Appeals) also cited relevant case laws to support the decision. The Tribunal upheld the deletion of the addition based on similar judgments where additions made under section 69 were deleted due to lack of evidence of understated investment.

Issue 2: Referral to Departmental Valuation Officer

The revenue contended that the AO was bound to refer the matter to the DVO u/s 142A, which was not done in this case. However, the ld. CIT(Appeals) considered the facts and submissions and concluded that the AO's addition was not justified based on the available evidence. The Tribunal, relying on previous judgments, upheld the decision of the ld. CIT(Appeals) in deleting the addition.

Issue 3: Reliance on Pre-142A Judgments

The revenue argued that the ld. CIT(Appeals) wrongly relied on judgments delivered prior to the introduction of section 142A. However, the ld. CIT(Appeals) considered the facts of the case and relevant legal principles to make a decision. The Tribunal, citing other cases, supported the ld. CIT(Appeals)'s decision to delete the addition, emphasizing the importance of evidence in invoking section 69B.

In conclusion, the Tribunal dismissed the appeal, upholding the deletion of the addition made u/s 69B read with section 142A of the Income-tax Act, 1961.