2011 (4) TMI 935

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....3 as under: : From                               Area                     Cost     Rate per sa.m.                 Relating to land at_______ M/s. Skyline constructions                              600 sq.mtrs Rs.92,03,220    &....

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....sp;  By comparing cost of TDR purchased Rs. 1.43 crore and value reflected in mortgage deed Rs.2 cr, the AO concluded that assessee had made an explained investment. -     On the basis of the rate of Rs.28,500 of fully constructed industrial building in Malad reflected in the Stamp Duty Ready Reckoner, the AO made an addition of Rs. 2,25,92,287 under sec.69B (Market value @Rs.28,500 - Rs.3,64,80,000 less cost disclosed - Rs.1,38,87,713 = Rs.2,25,92287/-. 3.  On further appeal before the Ld. CIT (A), the Ld. CIT (A) held as follows: "I have duly considered the submissions of the A. R. and I find that the appellant has explained the sources of purchase of TDR. The addition made by the A.O. is on account ....

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....ing officer wrote another letter on 18.12.2008 stating as under: "in this respect, please find enclosed copy of information called for and received U/s 133(6) of the Act from office of the ft. Sub Registrar, Borivali Registration Officer, Borivali, in respect of the market value and the stamp duty paid on the same regarding TDR purchased on property bearing CTS No. 1068/C. As is evident on a perusal of the same, it is seen that the market value of the TDR is shown to be Rs. 2,00,00,000/- on which stamp duty of Rs.1,00,000/- has been paid which amounts to 0.5% of the market value. You are given an opportunity to explain the discrepancy between the amount declared by you and the amount shown in the stamp valuation as described above and al....

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....addition is called for u/s. 69B. The A.O. is directed to delete this addition." 4. We have heard both the parties. The Ld. Counsel for the assessee Shri Nayak submitted at page 1 of the Paper book a copy of Ready Reckoner from which it is clear that the same was meant for reference with respect to Stamp Duty and Market value of flats in Mumabi and not reference for TDR rates. There is a wide variation between value of TDR and value of fully constructed industrial building and the two values are not comparable. As rightly pointed out by the Ld. CIT (A), the AO's letter dt. 18.12.2008 shows that while examining the AIR transaction of. Two crores, the AO has mixed up the AIR transaction of two crores with purchase of TDR of Rs.  1,43,0....