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2016 (8) TMI 1483 - AT - Income TaxSuppressed sale consideration in respect of flat sold by the assessee at a lower rate that the other flats in the same building - addition as assessee failed to justify before the Assessing Officer as to why the aforesaid flats were sold at a lower price - sale price was below the price declared by the State Government of Maharashtra or below the market price. HELD THAT:- It is not a case of transaction between related parties. Assessee also informed the Assessing Officer that unit no. 302 sold at a value which was substantially higher than the market rate computed by the state Government of Maharashtra, hence, only reason why flat no. 101 commanded higher price compared to other flats was that the said unit had locational advantage of entire floor suitable for a car show room compared to unit no. 302. In the light of the above facts, CIT(A) observed that there was no case made out by Assessing Officer that the sale price was below the price declared by the State Government of Maharashtra or below the market price. Assessing Officer had simply applied the differential in rates for booking of unit no. 101 and 302A for arriving at the actual booking rate for unit no.302. The addition made by Assessing Officer was therefore simply on the basis of difference in the rate in booking of unit no.101. CIT(A) relied on the decision of Mumbai ITAT in case of Nelkamal Realtors & erectors India (P) Ltd. (2013 (8) TMI 557 - ITAT MUMBAI) and held that Assessing Officer has not controverted the explanation furnished by assessee during course of assessment proceedings to explain the reasons for charging lower price in respect of unit no.302 sold vis-à-vis rate/price for unit no.101. In view of above, CIT(A) rightly deleted the addition - Decided against revenue.
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