PR. COMMISSIONER OF INCOME TAX (CENTRAL)-2 vs M/S SANSKAR HOMES PVT. LTD.,

Judgment text excerpt

$~15 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision : 17.03.2025 + ITA 50/2023 PR. COMMISSIONER OF INCOME TAX (CENTRAL)-2 .....Appellant Through: Mr Indruj Singh Rai, SSC, Mr Sanjeev Menon and Mr Rahul Singh, JSCs and Mr Gaurav Kumar, Advocates. versus M/S SANSKAR HOMES PVT. LTD. .....Respondent Through: Mr Vikas Jain, Mr Aviral Saxena, Ms Shrawani and Mr Hardik Jayal, Advocates. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA VIBHU BAKHRU, J. (ORAL) 1. The Revenue has filed the present appeal under Section 260A of the Income Tax Act, 1961 [the Act], inter alia, impugning an order dated 07.03.2019 passed by the learned Income Tax Appellate Tribunal [ITAT] in ITA No.4430/DEL/2016 in respect of the assessment year (AY) 2010-11. 2. The said appeal was preferred by the Revenue impugning an order dated 23.05.2016 passed by the learned Commissioner of Income Tax (Appeals) [CIT (A)] in Appeal No.67/2013-14, whereby the appeal preferred by the Assessee against the assessment order dated 26.03.2013 Signature Not Verified Digitally Signed ITA No.50/2023 Page 1 of 5 By:TARUN RANA Signing Date:21.03.2025 15:31:51 was partially allowed. 3. On 28.02.2024, this court had admitted this appeal on the following question of law: “A. Whether the ITAT on the facts and in the circumstances of the case and in law, has erred in deleting the disallowance of Rs.7,73,74,500/- made by the Assessing Officer on account of violation of Section 40A(3) of the Act?” 4. The controversy in the present case arises in respect of the disallowance of an amount of ₹7,43,74,500/- which is the amount paid by the respondent (Assessee) for purchase of the first and second floors of the property bearing No. F-60, Poorvi Marg, Vasant Vihar, New Delhi [the subject property] to M/