TMI Blog2012 (7) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned CIT(Appeals) has decided the appeal of the assessee for assessment year 2003-04 vide order dated 30.08.2010. There were certain apparent mistakes, therefore, Learned CIT(Appeals) has rectified those mistakes vide order dated Ist April 2011. The revenue has filed appeal bearing No.4917/Del/2010 against the order of Learned CIT(Appeals) dated 30.0.2010. It has filed one more appeal bearing ITA No. 3324/Del/2011 against the order dated Ist April, 2011 which has been passed under section 250 read with section 154 of the Income-tax Act, 1961. The assessee has filed an appeal bearing ITA No.4733/Del/2010 against the order of Learned CIT(Appeals) dated 30.08.2010 which is a cross appeal. It has also filed Cross-objection No. 396/Del/2010 in the appeal of revenue i.e. ITA No.4917/Del/2010. As far as the appeal of the revenue bearing ITA No.3324/Del/2011 is concerned, it has taken the grounds of appeal which are being taken in ITA No.4917/Del/2010. Grounds are verbatim same. It has not pointed out as to how the order of the Learned CIT(Appeals) passed under section 154 is not sustainable. The revenue has not expressed its grievance against the rectification order, therefore, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are in between Rs.6,000 to Rs.7,000 per sq. yd. Assessing Officer has adopted the rates of the land sold by the assessee at Rs.6000 per sq. yd. for estimating the sale proceeds. He estimated the sales value of Rs.31,21,980 for Radhey Shyam Park and Rs.22,92,000 for Rajinder Nagar Ind. Area. Accordingly, the Assessing Officer has made the addition in an assessment order, passed on 28.3.2006 under sec. 147 read with section 143(3) of the Act. 4. Apart from the above additions, Assessing Officer has made certain other additions also. Dissatisfied with these additions, assessee carried the matter in appeal before the learned first appellate authority who observed that the Assessing Officer has erred in adopting the rates for the sale of land at Rs.6,000 per sy. Yd. In the opinion of the Learned CIT(Appeals), the rates ought to be adopted at Rs.2500 per sq. yd. Learned CIT(Appeals) issued the directions accordingly vide her order dated 4.1.2007 passed in Appeal No. 64/2006-07. Dissatisfied with the order of the Learned CIT(Appeals), assessee as well as revenue came in appeal before the ITAT vide ITA No.418/Del/07 and 1365/Del/07. They have agitated all the disputes for which additions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Rs.6,000 per sq. yd. The calculations made by him read as under: In view of the discussions above, the sale price of the plots in question is taken to be Rs.6,000 per sq. yd. Accordingly, the sale price of land at Radhey Shyam Park is determined at Rs.31,21,980. (Rs.6,000 x 520.33) and at Rajinder Nagar Colony at Rs.23,93,000 (Rs.6000x382) as in the assessment order u/s. 143(3) dated 21.03.2006 . 6. Dissatisfied with the assessment order, assessee carried the matter in appeal before the Learned CIT(Appeals). Learned CIT(Appeals), in principle, upheld the assessment order but observed that Assessing Officer is not justified in applying the rate of Rs.6,000 per sq. yd. She observed that looking into the totality of the circumstances, a rate of Rs.2500 per sq. yd. be adopted as sale rates for Rainder Nagar Ind. Area plots and a rate of Rs.2900 per sq. yd. be adopted for Radhey Shyam Park Colony, while working out the sale proceeds for the sale of these two pieces of land. 7. The assessee in its appeal pleaded that rates disclosed by the assessee in the sale deed cannot be substituted on an estimate basis by the learned revenue authorities below It prayed that sale proceeds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sq. yd. The circle rate on that day were at Rs.2508 per sq. yd. The learned counsel for the assessee submitted that when the assessee submitted the sale deeds of adjoining area then addition on estimate basis on the report of an inspector cannot be made. On the other hand, Learned DR relied upon the assessment order, he pointed out that sufficient opportunities were given to the assessee for rebutting the facts collected by the inspector demonstrating the rates prevailing in the market but assessee failed to rebut those fact. 11. We have heard the rival contentions and gone through the record carefully For making the addition on account of suppressed sales in any business organizations, Assessing Officer has to point out that books of account of the assessee are not reliable. It has suppressed the facts. It has sold the goods at a higher rate then the one shown in the books. Assessing Officer has deputed an inspector to find out the exact rates prevailing in the area. The inspector has reported the rates for the sale of land in between Rs.6,000 to Rs.7,000 per sq. yds. This report was not supplied to the assessee nor learned inspector was put to cross examination. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e rate at that point of time was Rs.1338 per sq. yd. therefore, no addition is to be made for the sale of plots at Radhey Shyam Park. As far as Rajinder Nagar Ind. Area is concerned, the circle rate was Rs.2508 per sq. yd. and assessee had sold @ Rs.1,000 per sq. yd. Considering these aspects, we are of the view that the Learned CIT(Appeals) is justified in estimating the rates of this area at Rs.2500 per sq. yd. 12. As far as the decision of Hon'ble Punjab Haryana High Court relied upon by the assessee is concerned, we are of the view that it is quite distinguishable on the facts. The issue in that case was that as per sections 91 and 92 of Evidence Act, the terms and conditions of a contract duly registered cannot be changed by oral evidence by the parties. In the present case, Assessing Officer did not accept the book results of the assessee. He is estimating the sale proceeds of the assessee while assessing the business income. The decision relied upon by the assessee would be relevant, had its vendees were challenging the terms and conditions of the sale deeds? Taking into consideration the record and the order of the Learned CIT(Appeals), we are of the view that appeals a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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