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2011 (4) TMI 935 - AT - Income TaxAssessee engaged in construction activity - Purchased TDR for Rs. 1.43 crores – Property mortgaged against term loan of Rs 2 crores – Difference between TDR rates & Value in mortgage deed taken as unexplained investment – A.O. took market rates of industrial buildings for computation of addition - Held that:- A.O. while examining the AIR transaction has mixed up the AIR transaction of 2 crores with purchase of TDR of Rs 1.43 crores and consequently made erroneous conclusion that there is undisclosed investment within the meaning of Sec. 69B. There is a wide variation between value of TDR and value of fully constructed industrial building and the two values are not comparable. Therefore, addition made by A.O. adopting rate of fully constructed unit as provided in Stamp Duty Ready Reckoner for rate of purchase of TDR and stating the difference in both rates multiplied by area as undisclosed investment in purchase of TDR is erroneous. Decided against the Revenue
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