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2019 (10) TMI 1172 - ITAT INDORERevision u/s 263 - addition under the head “income from other sources” as per provisions of section 56(2)(ii)(b) - Difference of market value of the property was adopted by stamp valuation authority as the assessee had declared sale consideration - HELD THAT:- As in the present case, CIT has categorically recorded a finding on fact that on perusal of purchase deed of the property in question, it was noticed that the market value of the property was adopted by stamp valuation authority for ₹ 1,80,53,000/-, whereas the assessee had declared sale consideration at ₹ 1,25,00,000/-. As such difference amount of ₹ 55,53,000/- (₹ 1,80,53,000 (minus) ₹ 1,25,00,000/-) was required to be added back in the total income of the assessee under the head “income from other sources” as per provisions of section 56(2)(ii)(b) of the Act. But this was not found done in the scrutiny by the A.O. As further observed that the assessee had claimed registration expenses out of saving and capital but the assessee has disclosed business income u/s 44AD of the Act and has not maintained books of accounts. On perusal of return of income pertaining to the assessment year 2014-15, there was no capital account found. Hence, the expenditure incurred on registration amount to ₹ 14,08,345/- remained unproved/unexplained. CIT was of the view that apparently the registration expenditure was paid on undisclosed income and was liable to be taxed which has not been done by the assessee. The facts of the present case would fall where the A.O. did not conduct any enquiry or examined the evidence whatsoever related to the issue under consideration. There was total absence of enquiry or verification. Therefore, we do not see any infirmity into the action of the Ld. CIT for setting aside the assessment order and remitting the assessment to the file of the A.O. with a direction to examine the issues of difference of market value of the property in question and verifying the source of expenditure incurred on registration of the property after affording proper opportunity to the assessee. Assessee has placed on record a valuation report that was not before the authorities below. We therefore, in the interest of justice admit this valuation report as additional evidence and modify the direction of the Ld. CIT to the extent that while framing the assessment, the A.O. would also consider the objection of the assessee regarding adoption of the market value of the property and decide the issue in accordance with law
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