https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=371830 https://www.taxtmi.com/caselaws?id=371830 Addition in the assessment order framed u/s. 153A - absence of any incriminating material found in search - Held that:- We are inclined to hold that there was no incriminating material found during the course of search and seizure operation in the hands of assessee for AY 2004-05. As relying on case of Soumya Construction [2016 (7) TMI 911 - GUJARAT HIGH COURT] to hold hat the AO is not entitled and empowered to make any addition in the assessment order framed u/s. 153A r/w s. 143(3) of the Act for AY 2004-05 in absence of any incriminating material therefore, the addition made by the AO and reduced by the ld. CIT(A) is not sustainable and thus, we direct the AO to delete the entire addition made in absence of incriminating material for AY 2004-05. Rejection of books of accounts u/s. 145 - estimation of sales price of shops - estimating the unaccounted receipts of the project "Cosmo Complex" - Held that:- Referring to the general principle and guidance for valuation of rate of multi-story building from ground to top floor, rate adopted by the AO and ld. CIT(A) and weighted average rate submitted by the appellant, we are of the considered opinion that the assessee has not disputed the rate adopted by the ld. CIT(A) for ground and first floor of Rs. 30,042/-, which is must less than the weighted price of first floor as of Rs. 50,251.77 and little higher than the weighted price of first floor of Rs. 29,288.33 as submitted by the assessee and which has not been seriously objected or opposed by the ld. DR. Therefore, the adoption of rate by ld. CIT(A) for ground and first floor of Rs. 30,042/- per sq. mt. is confirmed. For rate of second floor CIT(A) has adopted rate of Rs. 30,042/- for second floor and as per assesee the weighted rate for this floor is Rs. 17,703.97. Keeping in view these facts and figures submitted by both the parties and by taking a balancing and reasonable approach and view, we find it appropriate to take average rate of these two which is approximately Rs. 24,000/- per sq. mt. and AO is directed to recalculate the addition for second and third floors sale of shops and offices accordingly. For fourth and fifth floor, CIT(A) has adopted similar rate of Rs. 22,000/- per sq. mt. for both these floors, whereas weighted average as per assessee for these two floor are Rs. 11,056.58 and Rs. 11,545.41 respectively. Keeping in view these facts and figures submitted by both the parties and by taking a balancing and reasonable approach and view, we find it appropriate to take average rate of these two which is approximately Rs. 16,500/- per sq. mt. and AO is directed to recalculate the addition for fourth and fifth floors sale of shops and offices accordingly. Consequently, grounds of assessee for AY 2008-09 are partly allowed with the directions to the AO to recalculate the on money earned by the assessee from sale of shops and floors from first floor to top floor during the relevant financial period of FY 2007-08.- Decided partly in favour ofassessee Case-Laws Income Tax Tue, 27 Nov 2018 00:00:00 +0530