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TMI Blog2012 (2) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... and in the circumstances of the case, the Tribunal is justified in law in holding that the statement 132(4) has no relevance to be treated as evidence in any proceedings under the Income Tax Act by virtue of an amendment u/s 132(4) in 1987; (ii) Whether on the facts and in the circumstances of the case, the Tribunal is correct in law in deleting the additions amounting to Rs. 6.77 lacs made by the A O for excess area allotted by the assessee, on account of on money receipt on the basis of circumstantial evidences; (iii) Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in deleting the additions made by the A O amounting to Rs. 43.42 lacs for flats allotted to bogus tenants by the assessee, on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The redevelopment project, as the record indicates, consisted of a free sale building, block A and a rehabilitation component consisting of blocks B, C, D and 2A. Block A consists of 45 floors whereas the rehabilitation component is of seven floors. The Assessing Officer in his order of assessment made an addition on two counts, in the amount of Rs. 3.77 lacs and Rs. 43.42 lacs respectively. As regards the first count the Assessing Officer was of the view that the tenants who were to be rehabilitated would have been entitled to alternate accommodation only in the rehabilitation blocks. Instead, certain tenants were allotted accommodation in the free sale component and in many cases were allotted an additional area. The Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts were entitled to built up area in the new building based on the area in their occupation. The assessee had evidently furnished some of the tenants additional area and accommodated them in the freesale building. The question was as to whether the assessee could have insisted on the old occupants paying the market rate for the extra area given to them in the new building. According to the Tribunal the old buildings could not have been demolished and reconstructed without the consents of the old occupants who were in a position to obstruct the redevelopment. The Tribunal accepted the contention of the assessee that a bargain was stuck between the developer and the old occupants and the old occupants did pay some consideration to the build ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re was no evidence to establish that the assessee has received any extra consideration from the old occupants. 8. The findings of the Tribunal have been questioned by the Revenue. The Revenue has sought to rely upon the judgment of the Supreme Court in Sumati Dayal v. Commissioner of Income Tax (1995) 214 ITR 801. Sumati Dayal's case involved a situation where the assessee claimed to have received a certain amount by way of earnings from horse races conducted in several parts of the country. The finding of fact was that the knowledge of the assessee of racing was very meagre and the claim of the assessee to have won a number of jackpots in several seasons at different centers was contrary to human probability. Moreover the books of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tenants were in a position to obstruct the project and if a bargain was struck by the builder with the existing tenants, no addition can be made in the facts unless there is evidence to show receipt of extra consideration. On these facts, the assumption that the same amount should be realized from a tenant in the existing buildings as realized from a third party purchaser of a free sale tenement would not be a correct assumption to make. The finding of fact which has been rendered by the Tribunal has not been challenged on grounds of perversity, or on the ground of no evidence. The submission is based on a pure reappreciation of facts, which would not be permissible. Similarly as regards the second count on which the addition was deleted b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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