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2023 (7) TMI 676 - ITAT DELHIDifference in rate of booking price - sale / booking of flats - different rates have been quoted/booked for the same area and the same project - On money paid by investor - assessee has shown the rate of booking in the range of Rs. 5000/- per sq. ft. to 6500/- per sq. ft whereas, the website of the assessee quoted the rate @9,500/- sq. ft. - HELD THAT:- Revenue cannot force the assessee to sell its space at a particular rate and the department cannot dictate terms to the assessee to sell at a particular rate. The whole addition made by the Assessing Officer in the instant case, in our opinion is purely based on presumptions and surmises and not based on any cogent or corroborative evidence. Since, the buyers to whom the space have been sold have admitted to have purchased at the price shown by the assessee in the books of account and since no addition has been made in the hands of those buyers and the basis of entire addition is on account of the price quoted in website, therefore, we find force in the arguments of the learned counsel for the assessee that such addition made by the AO merely on presumptions and surmises is not sustainable. We find the website does not give the rate as to whether it is carpet area or built up area or super built up area or the amenities, the quality of construction, special locational benefits and other value added facilities, etc. Nothing has been mentioned about the responsible person for contact or any address, as per the snapshot shown in the assessment order. Even the post search enquiry also does not reveal any “on money” paid by any of the investor. Assessee has already demonstrated that these are two independent units sold to two different persons and in fact the assessee has sold the above two flats @ Rs. 6000/- per sq. ft. Whereas the average price of the two flats comes to Rs. 5000/- per sq. ft. We, therefore, find merit in the argument of the assessee that the same cannot be the basis for making huge addition by adopting the rate of Rs. 8,075/- per sq. ft. Since, there is no iota of evidence that the assessee has received any extra money over and above the booking rate shown by the assessee in the books of account, addition in our opinion is based on surmises, conjectures and presumption. Decided in favour of assessee. Addition on account of notional interest - As we find that the CIT(A) has given a categorical finding that the advances made by the assessee are in the ordinary course of its business and are given in compliance of its business objective. We also find that the CIT(A) has given a finding that no interest expenditure has been incurred towards the payment of any unsecured loans the only interest payment has been made towards the acquisition of land and paid to the Noida authorities which is also capitalized towards work in progress. No reason to interfere with the findings of the CIT(A). Ground dismissed. Appeals by the revenue are dismissed.
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