TMI Blog2021 (6) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... Now coming to the omnibus additions made by the learned AO for all the 3 years, basing on these documents relating to 2 flats, AO while stating that there was understatement of the cost of the flats by 36% and 26.5% respectively the average of which comes to 24.5%, extrapolated the same in respect of all the sales of plots that took place between the assessment year 2009-10 and 2011-12. It remains an admitted fact that insofar as the other flats are concerned no material whatsoever, much less incriminating material is forthcoming. It is only the imagination of the AO that merely because there appears to be understatement in respect of one or 2 flats the same must have occurred in respect of all. Absolutely there is no material to sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... structions Pvt. Ltd. ( the assessee ), for the assessment years 2009-10 to 2011-12, deleting the additions, Revenue preferred these appeals. Since the facts out of which the issues requiring adjudication arise, are identical, we deem it just and proper to dispose these appeals by way of this common order. 2. Brief facts of the case are that the assessee is a company and as the name indicates is involved in construction activities. Search and seizure operation under section 132 of the Income Tax Act, 1961 (for short the Act ) was carried out in the case of M/s. JKG Constructions Pvt. Ltd. belonging to the JKG group on 04/08/2011 and during such search certain documents were found. Such documents include a calculation sheet for booking fl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vely. 4. Aggrieved by such additions assessee preferred appeals before the Ld. CIT(A) and contended that the amount of ₹ 2.65 Lacs was paid for stamp duty to Mr. Singh who is a document writer; that the payments cannot be considered as evidence of understatement in sale consideration because the sale of flats by builders is always subject to negotiations and the final consideration differs from the initial prices basing on the down payments or delays in handing over possession which results in reduction of price. Assessee contended that in respect of flat No. A-802 the initial cost of ₹ 3,600/- per square feet was renegotiated to ₹ 2,300/- per square feet by down payment of ₹ 16,40,000/- on 9/11/2010 and promise o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t by the Ld. CIT(A) on facts that depending upon several factors the sale consideration of the flats is subject to negotiations and announcements and directions. Factors like immediate payment or delays in handing over the possession of the flat would reduce the sale consideration. For these reasons he prayed that the order of the Ld. CIT(A) need not be interfered with. 8. We have gone through the record in the light of the submissions made on either side. It is a fact that in the search operation, even according to the Revenue, the documents that are found relate only to 2 flats, namely, A-601 and A-802. Insofar as flat number A-601 is concerned the documents are that the letter dated 30/7/2008 requesting the allottee by name RK Gauba t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t there is an attempt to reduce the sale consideration for the sole purpose of evading the tax. No material was produced before the Ld. CIT(A) to reach a conclusion as to the actual cost of the plot in competition with the prevailing market value. In respect of this flat also, the learned Assessing Officer requires to make enquiry as to the prevailing market value of the plot vis- -vis the figures mentioned in the documents. 10. Now coming to the omnibus additions made by the learned Assessing Officer for all the 3 years, basing on these documents relating to 2 flats, learned Assessing Officer, while stating that there was understatement of the cost of the flats by 36% and 26.5% respectively the average of which comes to 24.5%, extrapola ..... X X X X Extracts X X X X X X X X Extracts X X X X
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