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2014 (2) TMI 506 - AT - Income TaxAddition made as suppressed sales – AO noticed that the three flats in three different floors were sold at different prices - As per AO, assessee has earned more income from sale of flats than disclosed in sale agreement. - Held that:- The assessee has furnished various details and from there AO noticed that the three flats in three different floors were sold at different prices - Prima facie the explanation of the assessee is a plausible explanation and as seen in the MOU, there is a good reason to obtain a different and higher price - Whatever may be the reason for paying higher amount, the assessee has accounted for the entire amount and if there is any understatement of sale price of flat, it is for the revenue to establish the understatement by separately examining the sale of these flats rather than basing the assessment on the fact that flat was sold at a higher price. The assessee has filed additional evidence in terms of Rule 18(4) of not only an affidavit by the partner, letter from Shri N.R. Murthy and from the other purchasers of flat 701 and 801 but also placed the MOU entered on 06/10/2005 between builder and Mrs. Sudha Murthy and copies of photoes indicating the view point from apartment - As the additional evidence is admitted, Assessing Officer has to examine these, as they are not placed before Assessing Officer in the course of assessment proceedings – thus, the addition cannot be sustained on the basis of the reasoning taken by AO - Since the additional evidence was not placed before Assessing Officer, in the interest of justice, the order is set aside and the matter remitted back to the AO to consider the additional evidence and complete the assessment as per law and facts – Decided in favour of Assessee.
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