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2016 (2) TMI 81 - AT - Income TaxUnexplained investment in purchase of flat - Valuation of the residential flat - adoption of value as per jantri rate by CIT(A) - Held that:- The assessee who is not having any business income and is only earning income from salary and interest is not required to maintain any books of account. However, assessee has submitted details of cash book ledger, balance sheet and purchase bills and submitted that all the investments made in residential flat are having proper source in the form of accumulated capital balance of the assessee for past few years as well as housing loan from Canara Bank. We are further of the view that valuation report cannot be taken as an evidence for arriving at valuation of the residential flat as it was dated before the date of purchase/sale deed. As it can be seen from the record available and the valuation report by the Registered Valuer is dated 4th January, 2005 whereas the sale deed is dated 25.1.2005. Certainly section 50C of the Act refers to the value adopted or assessed by any authority of State Government for the purpose of payment of Stamp duty and ld. CIT(A) has rightly taken the value as per jantri rate at ₹ 4,79,400/-. The assessee’s submissions that the income surrendered at ₹ 2 lacs during the statement given u/s 132(4) of the Act should not be given any cognizance as the same has been given on oath and has not been retracted in a reasonable time. Also the fact remains that assessee has been unable to support the opening capital balance of ₹ 6,52,730/- shown in the balance sheet before the lower authorities and nor has been able to submit financial statement of previous years to depict that how assessee has been able to arrive at this capital of ₹ 6,52,730/-. However, we agree to the value of the residential flat at ₹ 7,49,970/- arrive at by the ld. CIT(A) but we differ on the deduction which has been restricted by ld. CIT(A) to ₹ 4,00,000/- as received by assessee as housing loan because some element of savings of previous years cannot be eliminated and in the interest of natural justice, we think that assessee certainly should have possessed its own fund and also in view of the surrender made by the assessee we sustain the addition to ₹ 2,00,000/- and thus assessee will get relief of ₹ 1,49,970/-. - Decided partly in favour of assessee
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