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2017 (11) TMI 1082 - HC - Income TaxAddition made on account of suppression of sale after rejecting books of account u/s 145(3) - since the average cost of purchase of saleable land comes to ₹ 364 per square yard and whereas the assessee has sold the plots for ₹ 400 per sq. yard which included a sum of ₹ 165 per sq. yard as development charges, therefore, in effect the selling price of the land was only ₹ 235 per sq. yard. and this position did not reflect true and correct picture of the books of account as selling of plot at a loss in real estate is absurd and not acceptable Held that:- We are of the opinion that the Tribunal while confirming the order passed by the Commissioner of Income-tax (Appeals) has not committed any error as held Assessing Officer has examined two persons who purchased the plots and such persons have confirmed having paid the same price. We have perused the statement of Shri Ram Swaroop Gurjar and Shri Ram Narain Sharma which is submitted at paper book pages 55 to 59. Thus there was no material before the Assessing Officer to hold that the assessee has suppressed the sale of plots, but on the contrary, we find that the Assessing Officer has erroneously assumed wrong facts as aforestated in rejecting the books of account and thereby proceeding to estimate the income of the asses see on account of suppression of sale of plot. We concur with the findings of the Commissioner of Income-tax (Appeals) and hold that the Assessing Officer was not justified in rejecting the books of account and estimating the income of the assessee. Even otherwise, the Assessing Officer was not justified in invoking the provisions of section 145(3) of the Income-tax Act. - Decided in favour of the assessee
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