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2023 (10) TMI 369 - ITAT AHMEDABADUnexplained investment in land - CIT(A) restricted part addition giving a relief based on the purchase price so found by the ld. CIT(A) of the impugned properties, he took the same for determining short-term capital gain earned by the assessee from the sale of properties - HELD THAT:- With respect to factual finding of the ld. CIT(A) relating to the cost of purchase of 4 pieces of land, gathered from the registered sale deed of the said land, furnished by the assessee to the ld. CIT(A), we find they were verified by the AO in remand proceedings. He had no adverse comments to make with respect to the same, and even before us, the ld. DR was unable controvert the factual finding of the ld. CIT(A) in this behalf. There remains, therefore, we hold, no grievance of the Revenue with respect to the cost of four pieces of land taken at the consideration mentioned in the sale deeds by the Ld. CIT(A). NA premium added to the cost of investment, the ld. CIT(A), we have noted, has given a finding that, even the sale deed of these land mentioned conversion of agriculture land to non-NA land the assessee having claimed to incur cost towards the same, he added the same to the cost of investment. The ld. DR was unable to convert this finding of the ld. CIT(A). Therefore, with regard to cost of purchase of four pieces of land taken by the ld. CIT(A) DR being unable to controvert the factual finding of the ld. CIT(A), we see no reason to interfere in the order of the ld. CIT(A). Deletion of addition, on account of one piece of land i.e. survey no. 1/2, the ld. CIT(A) has noted that there was no information with the AO with respect to the said piece of land; that even in the reasons recorded by the AO for reopening the case of the assessee, this land was not mentioned as investment made by the assessee, and even the assessee had claimed to have made no investment in this piece of land. The ld. DR was unable to demonstrate before us by way of documents or evidence, as to the basis with the AO for treating the assessee to have invested in this piece of land i.e. survey no. 1/2. No reason to interfere in the order of the ld. CIT(A) deleting the addition made on account of unexplained investment in the impugned land to the tune of Rs. 1.13 crores. We uphold order of the ld. CIT(A) treating unexplained investment made by the assessee in the land relating to only 4 piece of land to the tune of Rs. 1,95,52,180/- as opposed to the addition made by the AO in relation to five piece of land to the tune of Rs. 2,44,77,073/-. The ground No. D raised by the Revenue, is thus, rejected. Determination of cost of acquisition of the said lands - short-term capital gain was reduced - It is, this reduction in short-term capital gain earned by the assessee, on account of enhanced amount of investment found to have been made in the four pieces of land, by the Ld. CIT(A), which is in challenge - HELD THAT:- Since, we have held in ground no. 1 above that the ld. CIT(A) has rightly computed the cost of investment made by the assessee in four pieces of land at Rs. 1,95,52,180/-, as a corollary the short-term capital gain computed calls for no interference at our end. In view of the same, we see no reason to interfere in the order of the ld. CIT(A) reducing the quantum of short-term capital gain earned by the assessee to Rs. 2,73,44,720/- from Rs. 3,90,72,307/- computed by the AO.
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