TMI Blog2014 (1) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... he construction of the building - In the absence of any corroborative and incriminating documents, any third party material cannot be made basis for making the addition - The burden casted on the revenue cannot be said to be discharged merely on relying on the valuation report prepared for a different purpose obtained by issuing notice u/s 133(6) of the Income- tax Act - There must have been some material which could establish that there has been unaccounted transaction for acquiring the share – Decided against Revenue. - ITA No.5305/Del./2010, ITA No.5306/Del./2010, ITA No.5307/Del./2010 - - - Dated:- 20-6-2013 - Shri B. C. Meena And Shri C. M. Garg,JJ. For the Appellant : Shri Hiran Mehta, CA For the Respondent : Smt. Anuradha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from perversity as no finding has been given by him on Rent Capitalization Method or Return of Investment Method - methods referred by Assessing officer and whose calculations are made part of the assessment order, for determining the intrinsic value of unquoted equity shares. 5 (a) The order of the CIT (A) is erroneous and not tenable in law and on facts. (b) The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal" 2. A search and seizure operation was carried out u/s 132(1) of the Income-tax Act, 1961 at the residential and business premises of the assessees on 04.10.2007. All these three assessees acquired the shares of M/s. Superior Builders Limite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank loan. No incriminating document was found during the search operation which could suggest that there was any unaccounted investment in the building. The circle rate during the relevant time was Rs.6,900/- per sq. meter. Since this land was allotted by NOIDA Authority, therefore, there is no reason not to adopt the circle rate prescribed by the NOIDA Authority during the relevant period. Further, the valuer has not given any sale instances for arriving at the rate of Rs.33,000/- per sq. meter. There was no basis for taking such exorbitant rates. There was no evidence found during the search operation at the premises of the sellers and purchasers of the share that could suggest that sellers have paid above the declared consideration. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Money Total of Outside Liability B Difference of A B No. of Shares Intrinsic Value Per Share 299,422,262.00 500,000.00 123,905,745.00 3,000,000.00 426,828,007.00 40,348,410.00 636,550,00 63.39 At cost At cost At cost At cost The ld. AR also submitted that the Assessing Officer has completely ignored the outstanding liabilities as on 31.03.2006. These liabilities were also acquired along with the company. The total liability outstanding was of Rs.42.38 crores as on 31.03.2006 which were acquired by the person who has acquired the shares of M/s. Superior Builders Limited. The Assessing Officer's working that property was acquired for Rs.79.59 lacs was factually incorrect. The value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of the shares paid by Mittal Group comes to Rs.4.29 crores, thus, the total consideration for acquiring the company along with the assets comes to Rs.46.67 crores. The Assessing Officer has completely relied on the valuation report dated 20.11.2005 which was prepared for taking the bank loan. The Assessing Officer completely ignored the valuation report dated 02.12.2009 which was prepared to work out the market value of the property. This valuation report was prepared on the basis of prevailing circle rate of Rs.6,900/- per sq. meter by NOIDA Authority relevant to the period under consideration. In the valuation report dated 20.11.2005, there is no sale instances or comparable sales quoted by the valuer for adopting the value @ Rs.33, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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