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2016 (1) TMI 305 - AT - Income TaxAddition as unrecorded profit on sale of flats - AO made the addition on the ground that assessee had sold flats to different parties at different rates - CIT(A) deleted the addition - Held that:- CIT (A) has rightly observed that as per contents of sale document, there was reference to sale of fully furnished flat to Dr. Rajnish Juneja, but in the case of other parties, there was specific reference to sale of flat in semi-finished condition and as such, the flat in the case of Dr. Rajnish Juneja and other parties are not comparable. We find that the ld. CIT (A) further observed that the AO has not made any verification or enquiry with the parties to whom flats were sold from ₹ 7,50,000/- to ₹ 9,00,000/- and no information has been brought on record that the assessee has taken any extra sale considerations from these parties which was not recorded in the books of the assessee. We further take note of the fact that the ld. CIT (A) has recorded a finding of fact that there was no material in the possession of AO to support the allegation of unrecorded profit in the hands of the assessee and the Ld. DR could not controvert the said fact before us which is material to decide this issue. Further, the ld. CIT (A) has recorded a finding of fact that as per the sale deed, the assessee has disclosed full value of sale consideration and the said fact also could not be controverted by the Ld. DR before us, as such, we agree with the Ld. CIT(A) that there was no factual or legal basis to contemplate any notional or hypothetical sale consideration in the absence of any specific evidence or material in the possession of the AO to counter the stand of the assessee. Thus the addition is based only on presumption and surmises and so the addition made by the AO was rightly deleted by the Ld. CIT(A) - Decided against revenue.
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