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2019 (11) TMI 580 - AT - Income TaxAddition of net of understatement of sale consideration as well as understatement of expenditure from the collaboration agreement - HELD THAT:- Addition has been made by the ld AO on the basis of mere presumptions. The market value of the flat determined by the ld AO was without any evidence. The cost of construction is also determined by him at ₹ 1500/ sq ft without any evidence. He has not supported his order with any evidence of incurring expenditure by the assessee. He did not also take the expert opinion of departmental valuer if he had any doubt about the actual cost of construction incurred by the assessee. AO has also not made any enquiry with the buyers of those flats about the price paid by them. Further, the ld AO also did not submit what kind of enquiry he has made with real estate dealers of that area. He also did not deal with what kind of enquiry the inspector deputed has conducted. Obviously the inspector deputed could not have given the value of the flat sold as he has not an expert. The ld CIT(A) has considered all these facts and deleted the addition in absence of any material with respect to unaccounted expenditure or any on money received by the assessee on sale of flats. Further, the assessee supported the cost of construction with the registered valuers report. Therefore, there is no infirmity in the order of the ld CIT(A). The judicial precedent relied upon are on different facts. It merely said that inspector of the Income Tax is not qualified to estimate the cost of immovable property. There is no quarrel on this issue. Thus, we do not find any infirmity in the order of the ld CIT(A) in deleting the above addition
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