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2018 (5) TMI 1271 - HC - Income TaxAddition u/s 69 - unexplained investment in the property - difference in purchase consideration as per the banakhat and the final Conveyance Deed found during the course of search - Held that:- Only component principally missing was the furniture and fixtures which the owners were themselves allowed to sale which fetched a sum of ₹ 90 lakhs. There still remained a shortfall of ₹ 2.20 crores which had to be explained by the assessee. His only explanation was, after executing the agreement to sale, the property was revalued and assessee realized that the building was not suitable for running a hotel and furniture was too old. Though no breakup of valuation of the property was given in the agreement to sale, in the affidavit dated 26.05.2006, such breakup was given. Pre and post agreement to sale in which the valuation of building and furniture was drastically reduced, the Assessing Officer and higher authorities correctly noted that the valuation of ₹ 80 lakhs for the land defies logic where merely 6 years earlier the Government Approved Valuer valued the land at ₹ 1.17 crores. It is not as if the fact that such omitted land was new tenure land, was not noticed by the purchasers. In the banakhat itself, there is a reference to this parcel of land. The assessee's oral assertion that the valuation report of the year 2000 was not accurate and that the valuation was inflated only in order to obtain higher loan from the bank, cannot be accepted for the mere asking. There was no material in support of such assertion. Secondly, this would also cast serious aspersions on the Government Approved Valuer. Once agreement to sale was executed for price of ₹ 4.25 crores, it is difficult to comprehend why the sellers would agree to execute the sale deed at half the agreed consideration. No material was brought on record to show the reason for the sellers to act in such fashion, against their own interests. Disputes are purely factual in nature. No question of law arises - Decided against assessee.
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