9911796707
TMI Blog2012 (10) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... sake of convenience. 4. Assessee is an individual engaged in the business of diamond manufacturing and its import and export. The assessee filed his return of income on 26-2-2007 declaring total income of Rs.77,63,910/-.The case was selected for scrutiny. During the course of assessment from the particulars furnished by the assessee the A.O. noticed that assessee had acquired following properties: Property Name Area Value Rs. Rate per Sq. Mtr Rs.. Rate as per old jantry price Rate as per new jantry. Rs. Agricultural land 112 Althan 13182 Sq. Mtr. 47,18,936 357/ sq.mtr. Rs.1500/-sq.mtr. 7500/ sq.mtr. Agri. land 121 Bharthana 8802 Sq. Mtr. 31,58,160 358/sq. mtr. Rs.600/-Sq.Mtr. 4500/-Sq.Mtr. Agri. land 115 Bharthana 5716 Sq. Mtr. 18,50,899 323/sq.mtr. Rs.600/-sq.mtr. 4500/ Sq.mtr. Agri. land 24 Rundh 9713 9,00,000 92/sq.mtr. Rs. 800/-sq.mtr. 8000/-Sq.mtr. The A.O. was of the view that there was lot of variation between the purchase price shown by the assessee and the jantry price and therefore the purchase price as shown by the assessee was quite low. The A.O. observed that the assessee had paid additional stamp duty on the land acquired. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and. Section 69B provides: "Where in any financial year the assessee has made investments or is found to be owner of any bullion, jewellery or other valuable articles and [assessing] office finds that the amount expended on making such investment or acquiring such bullion, jewellery or other valuable article exceeds the amount recorded in this behalf in the books of account maintained by the assessee for any source of income, and the assessee offers no explanation about such excess amount or the explanation offered by him is not, in the opinion of the [assessing] officer, satisfactory, the excess amount may be deemed to be the income of the Assessee for such financial year". 11. It is clear from the aforesaid provision that there has to be a finding of fact that the assessee has expended investment more than what is recorded in the books and for such excess investment the assessee has no explanation or the explanation given is not found satisfactory by the assessing officer. In such a case the excess investment can be considered as unexplained and added u/s.69 of the Act. In this case undisputedly the appellant had under taken purchase of land and the purchase prices as shown in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the Assessing Officer. The Assessing Officer, is therefore directed to delete Rs. 2,56,26,205/- made under section 69B of the Act." 5. Aggrieved by the action of CIT(A), the Revenue is now in appeal before us. 6. Before us the Ld. D.R. submitted that the assessee had not submitted any documentary evidence to prove that the deal for purchase of land had taken place in F.Y. 2000-01.The Ld. D.R. further submitted that the price at which the assessee had shown the purchase of land is far below the market rates and the government rates. He further submitted that the market rate, revised jantry rates of the price of lands and the jantry price of land for F.Y. 2005-06 give the idea of market rate prevailing in F.Y. 2005-06. The contention of the assessee that the land is different from the land sold by Surat Urban Development Authority (SUDA) through auction is not supported by any documentary evidence. He thus submitted that the order of the Assessing Officer be upheld. 7. On the other hand the Ld. A.R. submitted and placed on record the copies of the agreements and its English translation and from it he pointed out to the fact that the payment for the land have been made in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. The above conditions are cumulative. If all these circumstances exist, the excess amount may be deemed to be the income of the assessee for the financial year in which the said investment was made or the assessee became the owner of bullion etc. 10. The factual position is that during the year the assessee had acquired land. It has been submitted by the assessee that it had paid the consideration for purchase of land in F.Y. 2000-01 and got the possession of land in F.Y. 2000-01 but the documents could not be executed in F.Y. 2000-01 and were therefore executed in the F.Y. 2005-06 relevant to A.Y. 2006-07. The assessee had also brought on record the copies of the agreement. The Ld. D.R. could not controvert this fact by bringing any material to the contrary on record. A.O. was of the view that market rate during the period cannot be less than the jantri price of land. He accordingly, taking into consideration the prevailing jantri price of land, estimated the undisclosed investment at Rs.3,62,54,200/-. After adjusting for the value disclosed in the books of accounts of Rs.1,06,27,995/-considered Rs.2,56,26,205/- as the net undisclosed income. The A.O. has thus relied on the j ..... 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