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2014 (6) TMI 148 - AT - Income TaxAllowability of deduction u/s 80IB of the Act – Held that:- Assessee has not furnished any details of ‘Built-up’ area before AO - AO has to obtain the sale deeds to ascertain the built-up area - CIT(A) without referring the issue on remand for verification of built up area, simply allowed the deduction, without verification of facts - Not only that he allowed proportionate deduction at sixty/sixty five flats in both years, without restricting to the actual profit on sale of flats - the CIT(A) erred in allowing the proportionate allowance without subjecting the details furnished to verification - The actual profit working of the project, excluding other real estate transactions is not on record as copy of 3CB reports were not placed in paper books - This also requires verification – thus, the order is set aside and the matter is remitted back to the AO to examine the eligibility and determine the amount of profit, if assessee is found eligible for deduction u/s 80IB – Decided in favour of Revenue. Addition of Rs.1.78 Crores – Held that:- The assessee’s Managing Director was confronted with the statement of Mr. P. Shankara Rao and the assessee has admitted to have paid Rs. 1.78 crores vide statement dated 09.11.2006 whereas, search was conducted on 07.11.2006 - the statement of the assessee was recorded much after the search, thus, it cannot be said that the assessee was under the state of utter confusion or not in a proper state of mind while making the statement on account of pressure from the Department - the statement of the assessee was not even recorded during the course of search - it cannot be said that the statement was recorded under utter confusion as he has sufficient time to consult the professionals - Moreover the assessee has filed the affidavit retracting from his earlier statement – there was no infirmity in the order of the CIT (A) who has rightly treated the receipt of on money – Decided against Assessee.
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