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2018 (7) TMI 118 - AT - Income TaxAddition being on-money received by the company from the sale of flats - Addition considering the statement u/s.133A of the director - Held that:- The statement made is categorical based on a personal knowledge of the assessee. A departure therefrom for the purpose of quantification cannot be deciphered cursorily. Therefore, addition of ₹ 28 Lakhs (towards understatement of on-money of 4 flats) out of ₹ 70 Lakhs on this score requires to be confirmed and the order of the CIT(A) requires to be set aside to this extent. Action of the CIT(A) however appears justified with respect to deletion of addition to the extent of ₹ 42 Lakhs for the reasons given by the CIT(A). Flat sold earlier at a lower price was cancelled which was re-booked in the subsequent financial year at a price which is close to the price of the other flats. Thus, the preponderance of probabilities weigh in favour of the assessee and thus, action of the CIT(A) in this regard does not call for interference. In conclusion, the addition of ₹ 28 Lakhs out of ₹ 70 Lakhs by the AO concerning project ‘Earth 12’ deserves to be sustained and for remaining amount the deletion made by the CIT(A) is confirmed. Addition towards on-money of project‘Earth Errita’ - Held that:- Assessee not explained as to what prompted him to make alleged wrong assertions before the survey team and repeated again before the DDIT (Inv.) after a gap of nearly three months on the factual aspect that six bungalows have already been booked at the time of survey as referred to in reply dated 25.07.2011 before the DDIT (Inv.) reproduced at page no.4 of the assessment order. The facts regarding disclosure of on-money, if any, concerning remaining 6 bungalows has not been examined by the CIT(A) to enable it to exclude the addition of ₹ 1.30 crores in respect of 2 bungalows. Issue regarding addition of ₹ 1.30 crores towards 2 bungalows requires to be remitted back to the file of the CIT(A) for de novo examination and for passing fresh order in accordance with law after giving reasonable opportunity to the assessee. We do not find any good reason to interfere with the order of the CIT(A) for accepting lower declaration by ₹ 4 Lakhs on sale of 4 bungalows for the reasons borne out from the order of the CIT(A) - Appeal of the Revenue is partly allowed.
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