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2015 (7) TMI 165 - ITAT DELHIUnexplained investment in property - CIT(A) deleted the addition - Held that:- The entire addition is based on the presumption that the assessee must have received an amount of ₹ 18,79,500/- being the difference between the value of the property estimated by the D.V.O. and the amount declared as consideration in the sale deed of the property, which as per the AO is unaccounted receipt of cash for sale of property. There is not even an iota of evidence with the AO to come to a conclusion that the assessee has actually received cash, over and above the amount declared by it for the sale of this property. This is not a case where Sec.50C has been invoked. It is an addition made u/s 68. It is not a case of computation of capital gains. The factual finding of the Ld.CIT(A) could not be controverted by the Revenue. Thus both legally and factually the order of the First Appellate Authority is to be upheld - Decided against revenue. Addition u/s 68- CIT(A) deleted the addition - Held that:- S.68 cannot be invoked under the facts and circumstances of the case. A hypothetical and imaginary addition has been made by the A.O.The departmental Valuation Officer has on reference made u/s 142A of the Act valued the property at ₹ 46.96 lakhs, which is marginally higher than the purchase consideration of ₹ 45 lakhs disclosed by the assessee. The difference is negligible. Taking evaluation report value, arrived at 2 years after the date of transaction and then arbitrarily modified the value and thereafter treating this amount as sale. Under the circumstances no addition can be sustained on the ground that banker’s valuer, after two years after the date of transaction, valued the property at a particular amount when no material is found in support of the AO’s conclusion that the assessee had made unaccounted investments in purchase price. The AO can not ignore the DVO’s report. The addition has been made on conjectures and surmises and without any basis. Hence the First Appellate Authority has rightly deleted the said addition.- Decided against revenue.
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