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2021 (10) TMI 546 - ITAT INDOREUnexplained investment in purchaser of land - lands purchased at higher prices but in the registry actual amount paid by them was not declared - purchase consideration paid being less than the guideline value - as during the year under appeal assessee purchased lands at Rau and value as per registry was as different from guideline value - as loose papers found and seized from the premises of Shri Mukesh Jhaveri and also gave reference to the statement of some of the sellers who accepted to have received ‘on money’ - HELD THAT:- As decided by CIT-A addition has been made on the basis of the statements of the sellers of the land which have neither been provided to the appellant nor opportunity of cross examining the sellers giving to the appellant. AO has not brought any evidence on record to show that the appellant had paid any amount over and above the amount mentioned in the sales deed. AO during the assessment proceeding had given a show cause notice in which it was proposed to add the difference between the guideline value and the purchase price mentioned in the purchase deed as undisclosed investment. For making an addition the requirement is that the assessee should have incurred expenditure, offers no explanation about the source of such expenditure and the explanation offered by him is not satisfactory in the opinion of the Assessing Officer. Section 69C can be invoked only when there is evidence of unexplained expenditure. AO has made the addition on account of undisclosed receipts. The appellant's real estate project is still in progress and no land had been sold for the period under consideration and clearly this is not a case of undisclosed receipts. For the assessment year under consideration there was no statute in the Income Tax Act for taxing the purchase consideration paid by assessee if it is less than the guideline value. As held that additions made on account of alleged undisclosed investment for purchase of land on account of the purchase consideration paid being less than the guideline value cannot be sustained. - Decided in favour of assessee.
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