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2015 (4) TMI 636 - DELHI HIGH COURT

2015 (4) TMI 636 - DELHI HIGH COURT - TMI - Unaccounted sales - ITAT hold that the addition made of ₹ 1,35,00,000/- representing sale consideration and sustained by the Commissioner of Income Tax (Appeals) was sustainable in law or on facts? - Held that:- Tribunal took note of each of the adverse findings recorded against the appellant. In fact paragraphs 35-37 deal with other amounts and held that the sum of ₹ 15,15,000/- which was sustained by the CIT (Appeals) was unwarranted. Lik .....

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r as the three amounts in question are concerned, at least no such question of law arises. As to whether the interpretation placed upon the document is such as to amount to patent error or not, in any case the interpretation given to the two documents in question and the inference drawn on the basis of the statements made are not such as to attract the jurisdiction of the Court which is confined to framing and answering substantial question of law. Since no such substantial question of law arise .....

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ted 8.3.2013 in IT(SS)A No.117/Del/2006. It urges the following substantial questions of law: - (a) Whether, there was any material with the Income Tax Appellate Tribunal to hold that the addition made of ₹ 1,35,00,000/- representing sale consideration and sustained by the Commissioner of Income Tax (Appeals) was sustainable in law or on facts? (d) Without prejudice to the aforesaid, whether on proper construcion of the documents seized as Annexure - A1/60, could the Income Tax Appellate T .....

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he Income Tax Appellate Tribunal legally justified in holding that, an amount of ₹ 49,64,904/- was received by the assessee in cash and was its income. 2. The facts are that the search and seizure operations were conducted in the assessee s premises on 8.5.2013. Notice was thereafter issued as to why block assessment should not be completed in respect of AY 1998-99 to AY 2004-05. The assessee filed the NIL assessment. On 31.5.2005, the AO framed the assessment bringing to tax the sum of &# .....

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. 3. The assessee appealed to the CIT (Appeals). During the course of the appeal, the CIT (Appeals) sought a remand report. After taking note of the materials, the remand report was furnished to the CIT (Appeals). The assessee was afforded an opportunity as a result of which it filed a response/rejoinder to the remand report. The remand report and the rejoinder are part of the record. Based on the submissions made and all the available materials, the CIT (Appeals) accepted the assessee s content .....

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Tribunal affirming the sum of ₹ 1,35,00,000/- is manifestly erroneous. To say so, learned senior counsel relied upon pages 484 and 483 of the paper book which is a part of Annexure A-1/60. It was submitted that the said amount represented the difference between the estimated value of the area booked by some individuals, i.e., Bhatias in Vatika Triangle, one of assessee s projects and the value of the area in another project, i.e., Vatika World. This difference was ₹ 17,93,217/-. It i .....

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f those documents). It is submitted that this was in respect of the inclusion of an area of 1805.42 sq. ft. which was seized from one Mrinal Nag and not seized from the assessee. The statement of the individual, without any material to show what the amount represented, was attributed as the assessee s income. Such addition could not, therefore, have been made in the subject assessment, since it had nothing to do with the assessee at all. 5. This Court notices that so far as the sum of ₹ 1, .....

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hatia This sales instance has been pointed out by the A.O. on the basis of seized document at page no.122 of annexure A-1/60. This paper was referred to in respect of discussion in the case of Vatika Triangle as well. Since, this document shows sale of flat in Vatika Triangle and purchase in Vatika Triangle as it was not indicating the sale by appellant but, by these investors. This paper also indicates sale of flat no.110 of 10,000 Sq. Ft. In Vatika World towards which unaccounted receipt of &# .....

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ments at pages 28, 15 and 30 of annexure A-9 seized from residence of Sh. Anupam Nagalia. He has also referred to the list of flat owners in the file New Site Sales/My documents/C:/ computer of Jyoti Tiwari . He has also referred to page no.31A of annexure A-13. As per the observation of the A.O. on page 28 of annexure A-9 there is evidence of sale of 6,000 sq. ft. In Vatika World . As per the A.O. the total sale consideration in respect of sale of the two flats was ₹ 78,53,577/- and not & .....

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de a factual analysis of each of the amounts which was directed to be added by the CIT (Appeals) (who in turn had not sustained the entire larger sum of ₹ 45,89,68,630/-). The Tribunal dealt with the question of addition of both the sums of ₹ 1,35,00,000/- as well as ₹ 49,64,904/- in the following terms: 33. We have duly considered the rival contentions and gone through the record carefully. The first document considered by the learned Assessing Officer harbouring a belief that .....

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7; 4682 per sq. ft. In this transaction, the cheque consideration is ₹ 1600 per sq. ft. And rest of the amount was in cash. WE have noted down the details in paragraph 17 of the order, while taking note of the assessee s arguments. Similarly, the assessee has sold 10,000 sq. ft. areas to Bhatias. It received a premium of 1350 per sq. ft. According to the assessee, it had suffered a loss of ₹ 17,93,217 in the transaction whereas according to the Learned DR in the submissions extracted .....

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d in the investment. In a way, it has considered value of Rs,1,35,00,000/- as premium for investment in Vatika World. Thus, at one place this amount has to be added as income of the assessee i.e. either at Vatika Triangle on account of value of enhanced stock or at Vatika World. Considering the findings of the Learned CIT (Appeals), we do not see any reason to interfere in it. Addition of ₹ 1,35,00,000/- is confirmed. 34. The next documents referred by the Assessing Officer are page Nos.28 .....

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88,672 disclosed in the sales register. Learned CIT (Appeals) has also confirmed the addition of ₹ 49,64,904/-. For appreciating this issue, we deem it appropriate to take note of the seized material whose photo copies are made part of this order. 8. With regard to the addition of ₹ 1,35,00,000/-, the Tribunal s findings are as follows: - 38. On due consideration of the facts and circumstances, we are of the view that the ITAT in the case of Vatika Green Field has considered the docu .....

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ame on the completion of the project which suggests that how much return the project can give to the investors. The paper in itself does not disclose the cash components, otherwise, Learned CIT (Appeals) instead of confirming the addition with regard to flat No.401 purchased by Shri D. Chahal ought to have considered the names of other persons available on this page. This document was used by the learned Assessing Officer as a corroborative evidence indicating the rate of the flats sold by the a .....

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