TaxTMI 
TaxTMI 
2014 (1) TMI 858
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....s of M/s. Superior Builders Limited. Since the issue involved is common all these three appeals are decided by this common order. The grounds of appeal are also the same except the difference in the figure of the amount of addition deleted by the CIT (A). The grounds of appeal in ITA No.5305/Del/2010 read as under :- "1 On the facts and in the circumstances of the case, the Ld. CIT (A) has erred in deleting the addition of Rs.4,61,30,100/- being undisclosed investment in acquisition of unquoted equity shares of M/s Superior Builders Ltd. 2. The CIT (A) has erred in law in not removing the procedural shortcoming of the Assessing Officer. The CIT (A) has ignored the various decisions of the Apex Court including Commissioner of Income Ta....
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....rough this arrangement it was intended to transfer the immovable property in favour of these persons. Thus, the intention was not only to acquire the company but also to acquire the assets of the company. The company was having two industrial plots of 6,000 sq.meter each at Plot Nos.1 & 2, Sector 125, NOIDA which has been subsequently let out to HCL Technologies Limited for a monthly rent of Rs.55.50 lacs. The Assessing Officer obtained a valuation report from the bank dated 28.11.2005 wherein the value of the land has been adopted by the valuer @ Rs.33,000/- per sq. meter and the valuation of the building comes much higher than the valuation of the property worked out in the valuation report dated 14.11.2009 by the same valuer. Therefore, ....
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....67.50 per share. The ld. AR draw our attention to page 11 on which the intrinsic value of unquoted shares of M/s. Superior Builders Limited as on 31.03.2006 has been worked out. For the clarity, we reproduce the working hereunder :- Sl. No. Particulars As on 31.03.2006 Remarks (A) (i) ASSETS Land 12000 sq.metrs. @ 6,900/- per sq.mtr. 82,800,000.00 As per prevailing rates of Noida Authority (ii) Cost of Construction 137,819,402.00 Valuation report dated 14.11.09 (iii) Machinery & Equipments 54,303,246.00 At cost (iv) Advance & other expenses 5,454,523.00 At cost (v) Investment in shares (As per Exhibit "A") 23,300,000.00 At cost (vi) Loans and Advances (As per Exhi....
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....tion report dated 14.11.2009 which suggests more accurate market value has been completely ignored by the Assessing Officer. This valuation report was prepared for market value of property as on 31.03.2006. The cost of construction as per this valuation report is of Rs.13,78,19,402/-. The cost of construction as per audited balance sheet of the company as on 31.03.2006 was of Rs.13,12,15,142/-. The value of valuation report is realistic and near to the actual cost as per balance sheet. The land rates were taken as per circle rate published by Noida Authority for relevant period. Finally, he pleaded that the order of CIT (A) deserves to be sustained. 4. We have heard both the sides on the issue. The Assessing Officer has carried away by t....
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....bank loan dated 28.11.2005 alone cannot justify the additions made in the hands of the assessee. There is no evidence for backing up the rate of land and the cost of construction in the earlier valuation report. The cost of construction worked out by the valuer in the valuation report dated 14.11.2009 comes nearer to the cost of construction declared by M/s. Superior Builders Limited in its audited books of account. There is no material on record which could show that there has been any unaccounted investment in the construction of the building. Therefore, in our considered view, there appears to be no ground for rejecting the amount of expenditure debited in the regular course for the construction of the building. In the absence of any cor....