COMMISSIONER OF INCOME TAX-14 Vs. ANIL ARORA

JUDGEMENT

(1.) THIS appeal under Section 260 -A of Income Tax Act, 1961 (hereinafter referred to as "the Act") challenges the order dated 08.08.2014 of Income Tax Appellate Tribunal (hereinafter referred to as "the ITAT") in appeal ITA No. 2293/Del/2011 in respect of the respondent (assessee) for Assessment Year (AY) 2008 -09.

(2.) THE assessee is a resident individual associated with business of Wings Pharmaceuticals Pvt. Ltd. It is stated that search and seizure action under Section 132 of the Act was carried out in the case of the said company on 14.02.2008 in which the assessee was also covered. The searches lead to proceedings being initiated under Section 153A, including against the assessee. All the cases arising out of the said search were centralized with Central Circle -2, New Delhi by CCIT (Central), New Delhi by order F. No. CCIT (Central) 2008 -09/449 dated 13.08.2008.

(3.) NOTICES under Section 143(2) and 142(1) along with questionnaire were issued on 13.08.2009. In the course of such proceedings, the Assessing Officer (AO), inter alia, noted that property (admeasuring 2275.92 sq. yds.) No. 10/78, Punjabi Bagh (West), New Delhi had been purchased from Mr. Munish Sachdeva and Mr. H.K. Sachdeva by registered sale deed executed on 19.04.2007 by the assessee jointly in equal shares with his three brothers for total consideration of Rs. 3.90 crores. It was noted that while two other brothers (Mr. K.K. Arora and Mr. R.P. Arora) had paid Rs. 1.05 crores each, the assessee and his other brother had paid Rs. 90 lakhs each for their respective shares. The AO suspected it to be a case of undervaluation and, thus, referred the matter to Departmental Valuation Officer (DVO) to ascertain the correct value of the property. The DVO, in his report, determined the value of the property at Rs. 6,47,72,800/ -. On the basis of the said estimation, the AO concluded that the assessee had reported the value of the investment incorrectly. He found the value of the assessee's share at Rs. 1,61,93,200/ - and on that basis, discounting Rs. 90 lakhs as declared, added Rs. 71,93,200/ - treating it as undisclosed investment under Section 69B of the Act.