TMI Blog2016 (1) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee. Therefore, this section is of no help while determining the unexplained investment of the assessee. In view of the above discussion, we are of the view that the learned Revenue authorities have failed to appreciate the facts and circumstances. The assessees have not made any unexplained investment in purchase of plots, and therefore, no additions deserve to be made. - Decided in favour of assessee. - ITA No.1404/Ahd/2015 - - - Dated:- 29-9-2015 - SHRI G.D. AGRAWAL, VICE-PRESIDENT AND SHRI RAJPAL YADAV, JUDICIAL MEMBER For The Assessee : Written submission For The Revenue : Shri Narendra Singh, Sr.DR ORDER PER RAJPAL YADAV, JUDICIAL MEMBER: The assessee is in appeal before us against the order of the ld.CIT(A), Valsad dated 20.3.2015 passed for the Asstt.Year 2008-09. 2. The assessee has taken four grounds of appeal, out of which ground no.3 and 4 are general grounds of appeal. In ground no.1, the assessee has challenged reopening of the assessment. In ground no.2 the assessee has contended that the ld.CIT(A) has erred in confirming the addition of ₹ 13,91,699/-, which was added by the AO on account of unexplained investment unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we deem it pertinent to take note of section 69B of the Act. It reads as under: Amount of investments, etc., not fully disclosed in books of account - Where in any financial year the assessee had made investments or is found to be the owner of any bullion, jewellery, or other valuable article, and the A.O. finds that the amount expended on making such investments or in acquiring such bullion, jewellery or other valuable article exceeds the amount recorded in this behalf in the books of account maintained by the assessee for any source of income, and the assessee offers no explanation about such excess amount or the explanation offered by him is not, in the opinion of the A.O.. satisfactory, the excess amount may be deemed to be the income of the assessee for such financial year. 8. A perusal of the section would reveal that section 69B of the Income Tax Act, authorizes the AO to deem unexplained investment, if he find that the assessee had made investments or owner of any bullion, jewellery, or other valuable article, and the amounts expended on making such investments or in acquiring such bullion, jewellery or other valuable article exceeds the amount recorded in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 74/- per sq. mtr. The A.O. was of the view that the purchase price shown by the assessee was quite low as compared to the prevailing market rate of the land. According to the A.O. the purchase price should have been ₹ 510/- per sq. mtr. He taking into consideration the prevailing jantry price and the auction price of SUDA, estimated the undisclosed investment at ₹ 97,41,000/- .After adjusting for the value disclosed in the books of accounts of ₹ 14,13,000/- added ₹ 83,27,600/-as the net undisclosed income. The A.O. has thus relied on the jantry price and auction price of SUDA and on that basis presumed that the amount expended is more than the amount recorded in the books. The A.O. has failed to bring on record any material to support his estimated price. 12. Section 50C is a deeming provision where under the stamp duty rate is treated as full value of consideration for the purpose of computing capital gain under section 48. It is applicable in the case of a seller of property and therefore cannot be invoked in case of purchaser of property for the purpose of section 69B. CIT (A) has given a finding that the A.O. has not made any independent enquiry or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in the case of Berry Plastics P. Ltd., 35 taxmann.com 296 and Jayendra N. Shah, 27 taxmann.com 306 made following observations: 8. Before us counsel for the Revenue vehemently contended that there was considerable gap between the valuation disclosed in the sale deed, which was also adopted for the purpose of assessee's books and what was estimated by the Stamp Duty Authority for the purpose of collecting stamp duty. He submitted that the Assessing Officer, on the basis of DVO's report, found that the investment was much greater than what was reflected in the books made by the assessee in purchase of such property. Counsel placed heavy reliance under Section 142A of the Act in support of his contention. 9. We are of the opinion that CIT(Appeals) as well as the Tribunal committed no error in deleting the additions made by the Assessing Officer. It is undisputed that the sole basis for making the addition was the DVO's report. DVO's report may be a useful tool in the hands of the Assessing Officer, nevertheless it is an estimation and without there being anything more, cannot form basis for additions under Section 69B of the Act. In absence of any oth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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