9911796707
TMI Blog2014 (1) TMI 1399X X X X Extracts X X X X X X X X Extracts X X X X ..... ") data received by the A.O. Assessee has invested an amount of Rs.44,74,500/- in purchase of vacant site Nos. 182, 183 and 187 measuring 5593 sq. feet at Bangalore. The cost of the property as per the stamp value was at Rs.44,74,500/- but the Assessee has shown to have paid an amount of Rs.26,58,440/-. Assessee was asked to explain why the plot has been purchased at much lower rate than the prevailing market rate. Assessee submitted that in order to avoid litigation with the Registration Department, she paid stamp duty as per the direction of the Sub Registrar, Yelahanka who estimated the market value at an amount of Rs.44,74,500/-. The A.O. referred the matter to the DVO, Bangalore to elucidate the correctness of the amount of investment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty was disputed, then the appellant has to go for appeal before the Deputy Commissioner under Section 45A of the Karnataka Stamp Act, 1957 for determination of stamp value. Due to huge time consumption for such procedure, the appellant was practical in not opting that route and decided to pay the stamp duty determined by the SRO, Bengaluru. This was the information got by the AO from AIR return and was of the view that in purchase of impugned site at Bengaluru, unaccounted investments have happened. Based on such criterion, the AO referred the matter to DVO and in finalising the assessment proceedings added the differential amount of value recorded in books at Rs.26,58,440/- to that one determined by DVO at Rs.55,93,000/-, i.e., Rs.29,34,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a, one has to consider the surrounding circumstances. In this context, the AO has rightly mentioned the relevance of surrounding circumstances as spelt out by the Apex Court in the case of Durga Prasad More, reported in (1973) 82 ITR 540 (Se), wherein, it has been said that the AO has to go beyond the documents produced to show that apparent was not real. The AIR information has given indication to the AO that based on the data got from stamp duty authorities of Bangaluru, probe is required in the affairs of the appellant to find out as to what is real. The immediate provocation for the AO was that the amount said to have been spent for purchase of site at Bangaluru was almost double, when the market value was considered by the stamp duty a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground that CIT(A) erred in confirming only 10% increase in the value admitted, which is baseless. Assessee in her cross objection is contesting the confirmation of the amount partly under section 69B. 5. We have considered the rival contentions and examined the documents on record. As seen from the documents of purchase of property, Assessee purchased vacant site No.182, 183 and 187 from one Mr. K. Venkata Subba Raju and the document was presented for registration on 8th August, 2008. The document was registered on the same day. As per the enclosures to the document, the Sub Registrar seems to have informed the market value for registration at about 11:16:36 AM and on the same day, Assessee accepted the same and signed the affirmation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned order. 5.2. Assessing Officer did not enquire the actual market value, even though referred the matter to the Sub- Registrar for valuation of similar properties in and around the same place where Assessee purchased. As seen from the document the property purchased is open land-plots. There may be sale of plots in the same location. This requires verification. Just basing on DVO report is also not correct as it is only estimation. We are of the opinion that the matter requires to be re-examined by the A.O. by giving due opportunity to the Assessee. Assessing Officer is also free to enquire from the seller and the outcome of his income tax proceedings as provisions of section 50C could have been invoked in seller's case. It is all the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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