DLF Urban Gets ITAT Relief in ₹328cr Dispute

The 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.

S-ET Image Source: Google

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