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TMI Blog2013 (2) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... rch and survey operations? 2. The issue pertains to addition of Rs.6.57 crores made by the Assessing Officer on the ground that there was on-money transaction in the sale of plots of lands developed by the assessee. Primarily the Assessing Officer based his reasonings on statements of two witnesses namely, Rasikbhai Jogani and Mahesh Hemraj Shah. Of-course there was statement of Site Engineer Dilip Chotalia also recorded indicating booking of plots at a higher rate than reflected in books. 3. Assessee carried the issue in appeal. CIT(Appeals) though believed onmoney transactions, brought to tax only profit element and not the entire receipt. CIT(Appeals) deleted the addition upon which Revenue approached the Tribunal. Tribunal confirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found which revealed that the assessee had ever received 'onmoney' on sale of plots. The disclosure was not on account of profits from such projects specifically. The persons whose statements are recorded have no locus standi to confirm as to what is the rate charged by the assessee. The persons whose statements were recorded have merely visited the site but has not actually transacted with the assessee. The Site Engineer is not empowered either book the plots or to quote the rate. If such statements are excluded, there is no evidence in the possession of Revenue to hold so. Since these persons are not competent to admit any undisclosed income, their statements cannot be admitted in evidence for taking a view against the assessee. If such p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t another sworn statement, the seller reverted to his earlier version and deposed that the sale price was Rs.34.85 lakhs AO made addition of Rs.30,75,005 as undisclosed income on appeal, CIT(A) held that the statement of the seller could not be relied upon and deleted the addition Tribunal held that the notings on the loose pieces of paper were vogue and could not be relied upon, and upheld the deletion of addition Questions as to what is the actual sale price of the property, the implication of the contradictory statements made by the seller and whether reliance could be placed on the loose sheets recovered in the course of search are all questions of fact and not substantial questions of law Appeal rightly dismissed by the High Court CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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