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The DCIT, Central Circle-3, Jaipur Versus M/s Advent Infraprojects Pvt. Ltd.

2017 (12) TMI 355 - ITAT JAIPUR

Unaccounted investment u/s 69B - fair market price/value of the property for the purpose of section 69B - Held that:- Since it is an issue of determination of the fair market value of the plots of land in question and it is apparent from the facts and chain of events as discovered from the search and seizure action and emerged from the documents disclosing the earlier agreements to sell of these plots of land that difference between the sale consideration agreed upon between the parties in the a .....

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disadvantages attached to this property. Therefore so far as the action of the AO to invoke the provisions of section 69B is concerned, it is proper on the part of the AO to invoke these provisions if the AO is satisfied that the investment made by the assessee is much more than it has shown in the books of accounts. - Thus this matter requires a proper verification and examination at the level of the AO for determining the fair market price/value of the plot of land in question. Since the .....

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following grounds as under:- 1 Whether on the facts and in the circumstances of the case the CIT(A) was right in deleting the addition of ₹ 4,66,00,000/- made by A.O. on account of unaccounted investment u/s 69B of the Income Tax Act, 1961. The appellant crave, leave or reserves the right to amend modify, alter add or forego any ground(s) of appeal at any time before or during the hearing of this appeal. 2. There was a search u/s 132 of the Act on 17.12.2014 in the case of Adventage Group, .....

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r consideration of ₹ 3,82,50,000/- and ₹ 2,97,50,000/- respectively. Both the agreements have been duly signed by the both parties. These agreements were cancelled vide agreement dated 06.06.2013. Subsequently, these two plots of land No. 201 & 202 were sold to Sh. Arun Goyal in the month of August and October 2013 for a consideration of ₹ 97.25 lakhs & ₹ 76.50 lakhs respectively. The AO was of the view that the fair market price/ value of these plots were ₹ .....

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bia Vishnoi and thereafter these plots were sold to Sh. Arun Goyal within 3 months from the date of the earlier agreement cancelled and again sold to the assessee at a substantially low sale consideration in comparison to the original agreements. Accordingly, the AO issued a show cause notice to the assessee as to why the differential amount of purchase consideration between the original agreements and the sale deed by which the assessee purchase these plots should not be considered as undisclos .....

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ements were between different parties showing a higher sale consideration cannot be adopted as fair market value of the property in transactions between the assessee and vender. The ld. CIT(A) has deleted the addition made u/s 69B of the Act by the AO. 3. Before us, ld. DR has submitted that though there is no direct evidence of payment of on money by the assessee to the seller however, the incriminating documents found during the search in case of Adventage Group clearly shown the chain of even .....

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hasers Sh. Manpreet Vishnoi and Ms Sabia Vishnoi. Subsequently, the agreement to sell was cancelled vide another agreement dated 06.06.2013 however, the advance received in cash was refunded by Sh. Kailash Chand Sharma and Smt. Urmila Sharma only after these plots were subsequently sold to Sh. Arun Goyal in the months of August and October 2013 for a substantially less consideration of ₹ 97.25 lakhs & ₹ 76.50 lakhs respectively. The AO has observed that the consideration was paid .....

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increased instead of decrees as claimed by the assessee. He has relied upon the orders of the Assessing Officer. 4. On the other hand, ld. AR of the assessee has submitted that the Assessing Officer has made the addition u/s 69B which is not attractive in the facts of the present case when none of the parties in the transaction has admitted any on money paid or received over and above the sale consideration stated in the sale deed. He has further submitted that the Assessing Officer has proceede .....

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invoking the provisions of section 50D. He has contended that even otherwise section 50D can be applied only in the case of computation of capital gain and in the hands of the seller and not in the hands of the purchaser. The Assessing Officer has made the addition without establishing the fact that the own money over and above sale consideration declared was actually paid. He has relied upon the following decisions:- (i) Aneeta Singh v. ITO 20 taxmann.com 93. (ii) CIT v. Berry plastics (P.) Ltd .....

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h were seized and exhibit as 24 of Annexure -A. These two agreements dated 28.03.2013 show that two plots of land situated at 201 & 202 Girnar Colony, Gandhi Path, Jaipur were to be sold by Sh. Kailash Chand Sharma and Smt. Urmila Sharma to Sh. Manpreet Vishnoi and Ms Sabia Vishnoi for consideration of ₹ 3,82,50,000/- and ₹ 2,97,50,000/- respectively. These agreements were subsequently cancelled by the agreement dated 06.06.2013. The statements of Sh. Kailash Chand Sharma and Smt .....

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hs as against the sale consideration agreed upon in the original agreements dated 28.03.2013 of ₹ 3,82,50,000/- and ₹ 76.50 lakhs as against the sale consideration of ₹ 2,97,50,000/- as per the agreement dated 28.03.2013. Thus the sale was effected at a consideration which was almost ¼ of the original sale consideration. This was the reasons for the AO to proceed with the matter for making the addition on account of on money paid by the assessee for purchase of these plo .....

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the matter further. Though the Assessing Officer has not conducted an enquiry for determining the fair market price of the property in question as required u/s 69B to satisfy himself that the actual value of the property is much higher than the sale consideration shown by the assessee resulting the investment made by the assessee to the extent of the difference between the fair market price and the consideration admitted being not shown in the books of account can be added to the income of the .....

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ion 69B of the Act. The Assessing Officer was ought to have brought some tangible material to satisfy himself that the investment made in these assets were more than the investment as shown by the assessee in the books of accounts. The ld. CIT(A) issue a remand order with specific direction that the director of the assessee company should have been examined by the AO. It is pertinent to note that this direction of the ld. CIT(A) even otherwise would not achieved any purpose as the director of th .....

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