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2012 (5) TMI 256 - AT - Income TaxUnexplained income - Difference in amount between sale agreement and sale deed - Sections 91 and 92 of the Indian Evidence Act, 1872 - held that:- In the present case, the AO as well as the CIT(A), proceeded to draw inferences against the assessee, on the basis of invalid statement of Shri Subhash Sharma, which was recorded on 3.9.2004, ignoring the retraction made by him in the cross-examination, conducted on 7.11.2006. It is, further consequent to highlight that both the AO and CIT(A), completely disregarded the sale deed, executed by the parties voluntarily, which contains Rs. 9 lacs as sale consideration. As discussed above, oral evidences cannot displace the direct documentary evidence, in the shape of sale deed containing specific sale consideration of Rs. 9 lacs. This view is duly supported by the decision of the Hon'ble jurisdictional High Court in the case of Paramjit Singh [2010 (2) TMI 262 (HC)] The question in the present appeal is squarely covered by the decision of the Hon'ble Kerala High Court in the case of CIT v. Smt. K.C. Agnes & Others (2003 (1) TMI 48 (HC)), wherein the Hon'ble High Court held that when a document shows fixed price, there will be a presumption that, that is correct price agreed upon by the parties. It is not necessary that the price stated in the agreement will be the price shown in the sale deed. Sometimes, it my be higher and sometimes it may be lower. Sometimes, intentionally a lesser value may be shown in the sale deed. Even if it is assumed to be so, unless it is proved that the agreement was acted upon and unless the amount stated in the agreement was paid for sale, the court cannot come to the conclusion that the price mentioned in the sale deed is not correct. - Decided in favor of assessee.
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