9911796707
TMI Blog2005 (11) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... etailed order and the reasons given therein were adopted in the appeals of other assessees. We, therefore, briefly set out the facts in the cases of four assessees and in particular the detailed facts mentioned in the order passed in the case of Panchavati Mall. Family members of four have constituted themselves into partnership firms, i.e., (i) Panchavati Arcade (ii) Panchavati Shopping Complex (iii) Panchavati Mall and (iv) Panchavati Estates. On 19th July, 1989, the four partnership firms purchased land with the following measurements: (a) M/s Panchavati Arcade 444 sq. yds. (b) M/s Panchavati Estates 427 sq. yd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that the mulgies allotted to the firms have deviations from approved plan and it does not have sufficient approach space and thus the assessee could not sell the mulgies at the rates at which the company could sell the mulgies allotted to itself. Detailed arguments were advanced by the assessee with the case law in support of its contention. Learned CIT(A), in the case of Panchavati Mall, has considered the issue in great detail and observed in paras 5.(i) to 5.(xvi) that addition cannot be made on notional profit in the absence of any proof to show that the assessee suppressed sale receipts. It is not in dispute that there is no direct evidence to show that the firms have received on-money from the purchasers of shops/mulgies. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect. He further contended that the learned CIT(A) merely followed the order passed in the case of M/s Panchavati Mall without independently considering the facts and circumstances prevailed in other cases. In particular he has relied upon a sale instance at the rate of Rs. 1,440 per sq. ft, which was sold to relative of one of the partners by the company, which reflects the market value of the shops in that area. He has also submitted that in the cases of this kind, direct evidence cannot be obtained and hence the probabilities have to be taken into consideration in the light of the decision of apex Court in the case of CIT vs. Durga Prasad More 1973 CTR (SC) 500 : (1971) 82 ITR 540 (SC). He further submitted that s. 50(c) cannot be applie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue in great detail it may not be necessary to repeat the facts and the contentions of the assessee here. Suffice it to say that on the sale of 83 shops/mulgies there is no evidence to show that the assessee has received any amount over and above what is mentioned in the sale deeds and, at any rate, over and above the market price fixed by the registration authorities for the purpose of stamp duty. It may be relevant in this context to refer to the decision of apex Court in the case of Union of India vs. Azadi Bachao Andolan & Anr. (2003) 184 CTR (SC) 450 : (2003) 263 ITR 706 (SC) at pp. 754, 758 and 762. In IRC vs. Duke of Westminster (1936) AC1 (RL) Lord Tomlin observed as under: "Every man is entitled if he can to order his affairs so th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lanning cannot be questioned except in a case where there is direct evidence to show that the sale price recorded in the sale deed is not the correct price at which the property was sold and some on-money is passed. Admittedly in these cases the AO could not lay his hands on direct evidence to prove that on-money has passed. Under these circumstances, we do not find any infirmity in the orders passed by the learned CIT(A) and accordingly dismiss the appeals filed by the Revenue. Needless to observe that the order of the CIT(A) having been upheld by us, it is not necessary to state the reasons in detail, as held by the apex Court in the case reported in CIT vs. K.Y. Pilliah & Sons (1967) 63 ITR 411 (SC) at pp. 415 and 416. 7. In the result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
