TMI Blog2010 (8) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income-tax Act 1961. 2. The assessee is an individual engaged mainly in the transport business and running proprietary concern under the name and style of Shri Shivalinga Transport at Shimoga. He is also a partner in various firms receiving remuneration and interest on capital. The assessee filed his return of income for ₹ 18,11,187/-. In the course of assessment proceedings, a series of additions were made by the assessing authority including disallowances of expenses and finally determined the taxable income at ₹ 92,16,623/-. The assessment was taken in first appeal. It was only partly successful. The assessee is aggrieved by the additions/disallowances sustained by the CIT(A) and therefore, this, second appeal filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee had paid an additional installment of ₹ 1,44,218/- towards outstanding balance and the sale of the right was made after the above payment. But the assessing authority computed capital gains taking the cost of the asset as reflected in the balance sheet. The Assessing Officer has not given credit for the payment made by the assessee to the extent of ₹ 1,44,218/-. It is the case of the learned Chartered Accountant that the cost reflected in the balance sheet was the opening balance and the payment made in the impugned previous year would be reflected if at all, only at the end of the year and not in the course of the previous year. He therefore, argued that the Assessing Officer has erred in adopting the opening balance refle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndra ₹ 2,50,000 9. It is the argument of the learned Chartered Accountant that except in the case of Shri Vijayendra, all other creditors have appeared before the assessing authority and confirmed advancing of monies to the assessee. It is the case of the assessee that the monies were availed by the assessee as advances for purchase of plots and properties. It is also the case of the Chartered Account that even opening balance has been added by the assessing authority. 10. We considered the matter. The assessee has produced the creditors except Shri Vijayendra. But, it is to be seen that all these persons were not in a position to explain before the assessing authority regarding the bonafides of their source of income. These ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lding at ₹ 18,53,113/- and that of the land at ₹ 51,40,964/-, total of ₹ 69,94,000/-. The valuation of the property was also considered by the District Registrar/the appellate authority. When the matter of under valuation of the property was initiated against the assessee, the District Registrar/the appellate authority has determined the value of the land at ₹ 79,61,525/- and that of the building at ₹ 21,60,000/-. 13. On going through the three sets of valuation reports available with us, we find that more effective and realistic valuation was that of the District Registrar, Shimoga. So, we direct the assessing authority to re-compute the capital gains on the basis of the valuation decided by the District ..... X X X X Extracts X X X X X X X X Extracts X X X X
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