TaxTMI 
TaxTMI 
2013 (5) TMI 746
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....total income of Rs. Nil. The case was initially processed u/s 143(1) and later on the case was reopened u/s 147 of 28.03.2008 for the reason that in Assessee's case survey u/s 133A was carried out on 22.07.2007 and during the course of post survey proceedings it was gathered that Assessee had made purchases of Rs.2229498/- whereas on verification of case records for AY 2002-03, Assessing Officer noticed that Assessee had shown total purchases of Rs.1124202/- in his books of accounts and therefore he concluded that the investment by the assessee in the construction of Hilton Plaza Complex from undisclosed source was to the tune of Rs.1105296/-. The assessee was asked to furnish details and explain the discrepancy in response to which the Ass....
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....on various decisions. The Ld. CIT (A) after considering the submissions of the Assessee deleted the addition by holding as under:- "5.3 I have considered the submission of the ld. AR and facts of the case. The question is to whether addition of Rs.11,10,552/- made by assessing officer on account of difference in cost of construction is within the ambit of law. The ld. Assessing Officer has not stated any evidence which is contrary to the income declared in the return of income by the appellant. There is no material on record to show that cost per SF is Rs.210/- as against Rs.177/- per SF. The learned officer has drawn his inferences on the basis of suspicion, conjectures and surmises. The Assessing Officer is bound by the principles of nat....
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....0/- per sq. ft. as against Rs.177/- per sq. ft. declared by the assessee. (b)The Ld. CIT (A) failed to appreciate that from the details furnished by the assessee it was apparent that the assessee had under valued the cost of construction as the cost of Rs.177/- per sq. ft. was very law considering the cost of material during the relevant period. Therefore, the A.O. was justified in adopting the cost of construction @ Rs.210/- per sq. ft. as against the cost of Rs.177/- per sq. ft. declared by the assessee. 6. Before us Ld. D.R. submitted that in the absence of details, the Assessing Officer had no other option but to estimate and thus supported the order of the Assessing Officer. 7. On the other hand, the Ld. A.R. submitted that the Asse....