TMI Blog2017 (5) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessees have entered a memorandum of construction agreement dated 29-03-2005 for construction the residential property with specifications of columns, beams etc., as stated in second page of the construction agreement, for a consideration of ₹ 45,00,000/-. M/s Maheshwari Megaventures Ltd., had shown this receipt of ₹ 45,00,000/- which was accepted by the A.O. It was also on record that the said company has spent only an amount of ₹ 27,77,538/- and balance was offered as profit. As seen from the notes on accounts also, the said company has taken over an entertainment center in the month of Feb 2006 and a restaurant which were not capitalized. However, A.O finds that the bills produced pertain to items for Hotel an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ners, spent an amount of ₹ 45,00,000/- and the same was claimed to have been paid to M/s Maheshwari Megaventures Ltd., which was entrusted the work of construction of property. A.O noticed that the sale document mentions that property being open plot of land with small room of 2,00 Sq. ft. When it was put forth to Assessee as to how such huge cost was shown for only small room, Assessee submitted the agreement of construction entered with M/s Maheshwari Megaventures Ltd., and also photographs of the land showing the existence of the building. A.O however, disbelieved the same and an amount of ₹ 7,42,499/- was disallowed. There are other disallowances, which were accepted but the dispute is only with reference to the addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said purchase was intended for hotels/restaurants, and not construction of house. 7.5 In view of all above mentioned facts and circumstances of the case and the detailed reasoning given by the A.O in the assessment order and the Remand Report, the addition made by the A.O is hereby upheld 4. Ld. Counsel referring to the purchase deeds placed on record submitted that the purchase deeds indicated that there was semi-finished building which was purchased along with open land in three separate agreements and there is proof that semiconstructed building was purchased. It was further submitted that immediately after acquiring the property, the parties have entered into the memorandum of understanding and then gave the construction con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds (along with portion of old house admeasuring 1000 Sq. feet) out of 1828 Sq. yards equal to 1529 Sq. Meters bearing premises No. 8-2-293/82/8/1323/A, Road No. 67, Jubilee hills layout . Similar description was mentioned in the other two documents also, which indicate that out of the 1828 Sq. yards of the land, there was a portion of old house admeasuring 1000 Sq. feet. Immediately thereafter the Assessees have entered a memorandum of construction agreement dated 29-03-2005 for construction the residential property with specifications of columns, beams etc., as stated in second page of the construction agreement, for a consideration of ₹ 45,00,000/-. M/s Maheshwari Megaventures Ltd., had shown this receipt of ₹ 45,00,000/- whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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