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2013 (5) TMI 746 - AT - Income TaxReopening of assessment - Unaccounted purchases - survey u/s 133A - CIT (A) deleted the addition on account of construction adopted by the A.O. @ Rs.210/- per sq. ft. as against Rs.177/- per sq. ft. declared by the assessee - Held that:- As from the assessment order it is seen that AO has worked out the average cost of construction on the basis of total area of construction and the total cost as per the books of accounts and came to the conclusion that the average rate of Rs.177/sq ft was very low. Nothing has been brought on record by AO to justify his conclusion that the average rate of Rs.177/- sq ft was very low. AO has estimated the cost of construction at Rs.210/ sq. ft. without justifying its basis. CIT(A) has given a finding that the inference drawn by the AO was based on suspicion, conjectures and surmises. Revenue has not placed any material in support of the findings of AO. Nothing is on record to justify the conclusion of CIT(A) that the rate adopted by Assessee was also not correct. It is a fact that Assessee has constructed the shops and incurred cost for its construction and without incurring the cost the Assessee could not have completed the shop for its sale. It is also a fact that the estimate made by the assessee of Rs. 133/ sq. ft. has been held to be two low by AO and at the same time the estimate of Rs. 220/sq. ft made by the AO is held to be without any books by CIT (A). Thus an estimate of addition of Rs.8 lacs would meet the ends of justice instead of Rs.11,10,552/- made by the AO - appeal of the Revenue partly allowed.
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