TMI Blog2014 (5) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... The Tribunal rightly noted the essential fact that purchase of land was directly from the farmers – no other evidence of on-money payment, as also in absence of any suggestion of the market value of the land purchased by the assessee being far more than what had been reflected in the sale deed - the registered documents had been executed at 'Jantri' value - There was no reference to the Valuation Officer to point out that the value of the land was below the market price – the issue is based on the factual matrix, thus, no substantial question of law arises for consideration – Decided against Revenue. - TAX APPEAL NO. 1051 of 2013 to 1057 of 2013 - - - Dated:- 11-2-2014 - MR. AKIL KURESHI AND MS JUSTICE SONIA GOKANI, JJ. Mrs. Mauna M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation of the material, all appeals since raise identical question of facts and law as also concerned respondent assessees are of the same group, they are being decided by this common order. 4. Brief facts necessary for the purpose of deciding these appeals are as follows: 5. Revenue had carried out search action under section 132 of the Act at the business and residential premises of Shahlon Group on 28.1.2010. During the search proceedings at the residential premises of Dhirajlal Raichand Shah, two agreements (Satakhat) were found and seized. What culled out from these two agreements was that one Shri Natvarsingh Nathusingh Admar was given cash of Rs.50,000/- and Rs.40,000/- by Shri Dhirajlal Raichand Shah and Shri Nitin Raichand S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition only on the basis of surmises and conjunctions that the assessee would have paid Rs.2,80,000/- per bigha. The onus thrusts upon the revenue to prove its stand is not met. As pointed out by the assessee, the decision rendered in K.P. Varghese v. ITO 131 ITR 597(SC) comes to its rescue. There is no evidence to show that the assessee had paid on-money for purchase of the land. The entire addition was made only based on the inference drawn from the two agreements found during the search which were claimed to be cancelled by the executors of the same. There was nothing on record to show that the agreements were acted upon as per the terms stipulated therein. There was no trace of cash payment in excess of the amount shown in the regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the entire material that both the Assessing Officer and the CIT(A) were convinced that both the agreements executed between the company and Shri Natwarsingh since had reflected clearly the rate of the land at Rs.2.80 lakhs per bighas. Subsequent registered sale deed effected in the name of the company at the rate of Rs.70,000/- to Rs.80,000/- per bighas was much lower in rate, and therefore, only inevitable conclusion was the exchange of on-money in the entire deal. It can be noted from the detailed discussion of both the authorities that except these agreements, there was no other evidence on the record. Admittedly, the land had been originally agreed to be purchased through middleman. The statement given by Shri Natwarsingh is eloque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny other evidence of on-money payment, as also in absence of any suggestion of the market value of the land purchased by the respondents being far more than what had been reflected in the sale deed, the Tribunal did not endorse the views of both the Assessing Officer and that of CIT(Appeals). Another aspect that had weighed with the Tribunal was the fact that the registered documents had been executed at 'Jantri' value. There was no reference to the Valuation Officer to point out that the value of the land was below the market price. 11. Predominantly, the issue is based on factual matrix presented before the authorities. Cumulatively, all circumstances and the facts that had emerged on the record led the Tribunal to the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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