IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

1. आयकर अपील सं. / ITA No. 1034/CHANDI/2024 (िनधा(cid:330)रण वष(cid:330) / Assessment Year: 2018-19)

&

2. आयकर अपील सं./ ITA No. 1035/CHANDI/2024 (िनधा(cid:330)रण वष(cid:330) / Assessment Year: 2019-20)

DCIT-Central Circle-1 M/s Trimurti Homes Pvt. Ltd.

बनाम/

Ludhiana – 141001 HB-1199, Phase-1, Urban Estate Vs.

Dugri, Ludhiana-141002 (cid:725)ायीलेखासं./जीआइआरसं./PAN/GIR No. AADCT-6759-P (अपीलाथ५/Appellant) : (ঋ(cid:529)थ५ / Respondent)

&

3. CO. No. 29/Chandi/2025 [In ITA No. 1034/CHANDI/2024]

(िनधा(cid:330)रण वष(cid:330) / Assessment Year: 2018-19)

&

4. CO. No. 30/Chandi/2025 [In ITA No. 1035/CHANDI/2024]

(िनधा(cid:330)रण वष(cid:330) / Assessment Year: 2019-20)

M/s Trimurti Homes Pvt. Ltd. DCIT-Central Circle-1 बनाम/

HB-1199, Phase-1, Urban Estate Ludhiana-141001 Vs.

Dugri, Ludhiana-141002 (cid:725)ायीलेखासं./जीआइआरसं./PAN/GIR No. AADCT-6759-P (Cross-Objector) : (Respondent)

Revenue by : Smt. Kusum Bansal (CIT) – Ld. DR (Virtual)

Assessee by : Shri Ashwani Kumar (CA) a/w Shri Aditya Kumar (CA) & Ms. Deepali Aggarwal (CA) - Ld. ARs सुनवाईकीतारीख/Date of Hearing : 15-10-2025 घोषणाकीतारीख /Date of Pronouncement : 13/11/2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1. The revenue is in further appeal for Assessment Years (AY) 2018-19 & 2019-20 against separate but identical orders of learned first appellate authority. The assessee has filed cross-objections. However, the cross- objections have not been pressed by Ld. AR during hearing before us. First, we take up revenue’s appeal for AY 2018-19 which arises out of an order passed by Ld. Commissioner of Income Tax (Appeals)-5, Ludhiana [CIT(A)] on 22-07-2024 in the matter of an assessment framed by Ld. AO u/s 147 of the Act on 31-03-2023. Having heard rival submissions, the appeal is disposed-off as under.

Assessment Proceedings

2.1 Pursuant to search action u/s 132 on the assessee and other entities on 16-11-2021, an assessment has been framed against the assessee. The assessee being resident corporate assessee is stated to be engaged in sale and purchase of farmland from farmers. It has been alleged by Ld. AO that the assessee sold farmlands at higher rates in comparison to rates as shown in the registers. Upon formation of belief of escapement of income, a notice u/s 148 was issued by Ld. AO to the assessee on 24-03- 2022 which was followed by notice u/s 143(2) as well as notices u/s

142(1) directing assessee to file requisite details / submissions etc.

2.2 It transpired that the assessee sold various properties to another entity M/s Homelife Buildcon Pvt. Ltd. (in short ‘HBPL’) which have been tabulated in para 3.1 of the assessment order. During another separate search proceedings, statements u/s 132(4) was recorded on oath from Shri Ajay Kumar Prabhakar of M/s Prabhakar Associates and proprietor of M/s Ajay Kumar, Stamp vendor as well as from Shri Raj Kumar Sachdeva, partner of M/s Prabhakar Associates. Shri Ajay Kumar was writing sale deeds and agreement to sell on behalf of directors of HBPL. These two persons acted as deed writers and facilitated execution of agreement to sell and registration of sale deeds as per the directions of directors of HBPL. These two deed writers were also covered in separate search proceedings. As per statement of Shri Ajay Kumar Prabhakar, the average rate of land purchased by HBPL from various farmers, as provided by the directors, varied between Rs. 2 to 2.5 Crores per acre.

2.3 During assessment proceedings of HBPL, certain evidences were found which proved that HBPL had purchased the agricultural land at much higher rates than the prevailing circle rates. Applying the same logic and analogy, it was concluded by Ld. AO that the lands were sold by the assessee to HBPL at rates higher than the prevalent circle / registered rates. Accordingly, the assessee was show-caused wherein Ld. AO