2008 (8) TMI 124 - HC - Income Tax

Search - addition of Rs. 15,71,001/-, being the difference amount between the price shown in the registered sale deed and the agreement of sale tribunal deleted the addition holding that stamp duty charges cannot be relevant for determining the exact sale consideration & assumed price, on the basis of incomplete and irrelevant document cannot be sustained - no appeal filed by revenue against this judgment of Tribunal and it has acquired finality therefore revenue s appeal is dismissed

Summary

Issues:
Appeal against common judgment allowing appeals of three assessees and deleting additions made by Assessing Officer.

Analysis:
The three assessees underwent block assessment for the period 1989-90 to 1998-99 following search and seizure operations at 'Nabi Group' premises. An agreement of sale for a property was found, showing a higher price than the registered sale deeds, leading to additions totaling Rs. 15,71,001. The Tribunal, in a detailed 53-page judgment, found the agreement incomplete and unreliable, deleting the additions. The High Court framed a substantial question of law regarding the Tribunal's decision.

During the hearing, it was revealed that the purchasers (assessees) also underwent block assessment, with similar additions made and subsequently deleted by the Tribunal. The Tribunal's judgment highlighted the incomplete nature of the agreement, reliance on the purchasers' statement of the actual purchase price, and the validity of registered sale deeds over the disputed agreement. No appeal was filed against this judgment, rendering it final.

The High Court, considering the finality of the Tribunal's judgment on the purchasers' appeals, deemed any further examination on the sale price contradictory and impermissible by law. Consequently, the Court dismissed the appeals, stating no substantial question of law remained to be addressed.