Representative ImageThe Delhi bench of the Income Tax Appellate Tribunal (ITAT) granted relief to DLF Urban Pvt Ltd by rejecting the addition of ₹328 crore to the company’s income for the assessment year 2016-17. It also said in a recent order that for the valuation of the property, the market value determined by real estate services firm Cushman and Wakefield was a more appropriate method of valuation of market price than the circle rates.DLF Urban Pvt Ltd, a subsidiary of DLF Home Developers Ltd (DHDL) had executed an agreement to buy land development rights in Delhi’s Moti Nagar from DHDL. The transaction was valued at ₹925 crore, based on an independent valuation conducted by Cushman and Wakefield, instead of the circle rate of ₹192.7 crore.The transfer pricing officer (TPO) added ₹328 crore as part of a transfer pricing adjustment related to the land development right purchase by DLF Urban.The addition to the income was upheld by the Commissioner of Income Tax Appeal, against which DLF Urban approached the ITAT.
Published On Apr 18, 2024 at 08:54 AM IST
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