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2019 (6) TMI 1430 - AT - Income TaxBogus purchases u/s 69C - HELD THAT:- We set aside the order of the Ld. CIT(A) and direct the AO to restrict the additions limited to the extent of bringing the G.P. rate on disputed purchases at the same rate of other genuine purchases. Rate difference in sale of flats/shops - Addition on account of difference in rate per sq. ft. charged to various customers vis-à-vis the market rates per sq. ft. on the date of booking by these customers - HELD THAT:- In M/s John Fowler (India) Pvt. Ltd. [2017 (1) TMI 1682 - ITAT MUMBAI] since the value of sale consideration reported by the assessee was less than the value as per the stamp duty authority, the difference between the two amounting to ₹ 33,48,684/- was proposed to be added back to the income of the assessee. In the above case, as the difference between the valuation adopted by the stamp valuation authority and the one declared by the assessee was less than 10%, therefore, the Tribunal directed the AO to adopt the value as declared by the assessee. In the instant case, the assessee is a developer and builder engaged in construction and developing commercial and residential complexes including malls. Section 43CA is applicable to the case of a developer or builder and thus applicable to the instant case. We are concerned herewith AY 2012-13. As mentioned earlier section 43CA is effective from AY 2014-15 and thus not applicable to the impugned assessment year. In view of the above facts and position of law, we delete the addition made by the Ld. CIT(A). Consequently, the appeal filed by the assessee is allowed and the appeal filed by the revenue is dismissed.
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