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2013 (6) TMI 404 - AT - Income TaxJurisdiction power u/s 263 by CIT(A) - sale consideration in respect of land both at Gurramguda and Badangipet should be taken at Rs.250/- per sq. yard and the difference should have been added which was not done by the AO - Held that:- Considering plea of the assessee that in a confused state of mind, he had accepted the sale of plot at Gurramguda at Rs.250/- per sq. feet and the sale of plot at Badangapet would not be at such higher rate as that of Gurramguda has to be considered. Further, AO shall enquire with the purchasers of the plots and has to determine the correct value after ascertaining the rate which is prevalent in that area at that period of time. Hence remit the issue to the file of AO to re-work the sale consideration of the plots and thereafter, decide the issue in accordance with law. Under-valuation of closing stock - Held that:- Merit in the argument of the assessee that the entire cost of development is not to be taken into consideration but the land development costs as on 31.3.2003 has to be taken and therefore, the amount of Rs.13,18,478/- arrived by CIT is the difference in closing stock, has to be deleted. Inclusion of amount received as advance found in the balance sheet to income of the assessee - Held that:- As during the A.Y. 2004-2005, the assessee sold parts of land at Rs.17,85,600/- and income of Rs.4,01,760/- was offered. The assessee has admitted the advances received during the year at Rs.7,59,943/- has revenue receipts for the immediately succeeding year. Therefore, AO and CIT were not justified in treating the amount of Rs.7,59,943/- as the income of the assessee.
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