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2015 (11) TMI 1721 - AT - Income TaxALV determination u/s 23(1)(a) - Municipal rataeble value adoption - Held that:- Hon’ble jurisdictional High Court in the case of Tip Top Typography, reported in [2014 (8) TMI 356 - BOMBAY HIGH COUR ] has upheld that Municipal rateable value can be adopted for determining the ALV u/s 23(1)(a). The Hon’ble High Court held that for disturbing the ALV or rent shown by the assessee, the AO must have cogent and satisfactory material in his possession indicating that the parties have concealed the real position. He must not make a guess work or act on conjectures and surmises. There must be definite and positive material to indicate that the parties have suppressed the prevailing rate and then only the enquiries can be made, for ascertaining the market rate. The Hon’ble High Court has also held that, if the standard rent is fixed by the Rent Controller or Municipal Rateable value is available then same is to be accepted as an ALV. Here, it is not a case that assessee has rented out the property and the rent received or receivable is less but the flat has been lying vacant, thus, it cannot be held that municipal ratable value cannot be the basis for determination of deemed ALV. Accordingly, respectfully following the decisions of the Tribunal and also the principle laid down by the Hon’ble jurisdictional High Court, we decide this issue in favour of the assessee Undisclosed income in the light of section 69B - cash payment from unaccounted sources have been made - Held that:- Similar issue based on similar documents were there in the group concerns of the assessee wherein the Tribunal in all the decisions have decided this issue saying that there was no evidence that any extra cash other than the sale consideration as recorded in the deed had changed hands. No statement of the sellers of the land had been recorded. No other corroborative evidence has been produced on the file by the Revenue Authorities to substantiate their allegation. The addition in this case has been made on the basis of the entries in the loose paper found during the search action, which at the most can be considered to have raised a suspicion about the transfer of money other than the sale consideration, but the suspicion itself and solely cannot be held to be a justifiable ground for making the additions, especially in the absence of any corroborative evidence. Except the loose papers in question no evidence, what to say of any direct or corroborative evidence, even no circumstantial evidence has been detected or brought on record by the Revenue. Hence, the additions solely on the basis of suspicion, how strong it may be, in our view, are not sustainable in the eyes of law. - Decided in favour of the assessee
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