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2014 (11) TMI 130 - ITAT HYDERABADSale transaction of land - Difference of amount between Agreement of Sale and Sale Deeds to be treated as undisclosed income or not – Held that:- When the difference of consideration between the sale agreement and the sale deed was put to Sri M.A. Chary, he has accepted vide his sworn statement recorded on 29.9.2008 that the total consideration for the said property was ₹ 3.06 crores - Sri M.A. Chary changed his stand on this issue and stated that the figure of ₹ 3.06 crores is not correct since there was some problem with the property recording Urban Land Ceiling and the vendees did not agree to pay the figure quoted by his late father - the total consideration was only ₹ 1.47 crores and not ₹ 3.06 crores and it was further stated that the agreement referred to was only an unsigned draft prepared for own guidance before finalising the transaction – CIT(A) rightly was of the view that the document found in the possession of Shri M.A. Chary at the time of search cannot be ignored as a dumb document due to the fact that the contents of the letter are independently corroborated - The property mentioned in the sale agreement was ultimately sold to the same vendee as agreed in the month of November 2004 - The amount of advance paid by cheque by Shri M.S. Prasad to the assessee was not in doubt - such document could not have been discarded as no evidentiary value attached to it. The assessee could not rebut the evidence found and the contention of the AO on this issue with any cogent or reasonable evidences - The document of sale agreement found in the residential premises of Shri M.A. Chary is a valid document in view of the contemporaneous evidence to the contents of the agreement - On the day of search Shri M.A. Chary deposed that his father sold plot for ₹ 3.06 crores as per agreement - Statement recorded on the day of search is primary statement and it was given on confronting various documents and material found during search - The deponent would not have ventured to state anything which is not in his knowledge - The subsequent retraction could not be considered as a valid retraction and it is only an afterthought. The property is situated in a posh commercial area of Jubilee Hills, Hyderabad and because of its prime location it will definitely fetch higher value than that was disclosed by the assessee - the buyer of the property will be having the registered document and hence the unsigned agreement being in the possession of the seller viz., the assessee would not amount to "dumb document" - the circumstantial evidence cannot be brushed aside particularly when going through the process of the agreement, all the clauses in the agreement have been followed - the property was registered by way of three different agreements of which the agreement dated 18.11.2004 mentioned consideration of sale consideration without bringing out the schedule of payment whereas in the other two documents payment schedules have been mentioned which only throws suspicion that the consideration has been consciously reduced – thus, the order of the CIT(A) is upheld – Decided against assessee.
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