AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (2) TMI 81
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssessed at Rs. 7,26,136/- and only one addition of Rs. 6,06,000/- was made on account of unexplained investment u/s 69B of the Act for investment in residential flat. In the statement recorded u/s 132(4) of the Act, assessee surrendered Rs. 2,00,000/- voluntarily towards investment in purchasing of flat and certain expenses for the renovation. But this surrender of Rs. 2,00,000/- was not shown in the return of income filed by the assessee in pursuance to notice u/s 153A of the Act and, therefore, the surrender made was deemed to be retracted. 3. The reason for addition of Rs. 6,06,000/- u/s 69B for unexplained investment in the residential flat has arisen during the course of search at the residence of the assessee where valuation report dated 5.1.2005 issued by Govt. approved Valuer was found pertaining to flat No.402 Vaishnavi Apartments, City Light Area, Surat, showing value of the flat at Rs. 9,67,000. Also during search, Registered Sale Deed of this flat was found showing purchase consideration paid at Rs. 3,61,000/- and the Stamp duty paid at Rs. 40,270/- totaling to Rs. 4,01,270 /- whereas as per jantri rate Sub- Registrar has valued the flat at Rs. 4,79,400/-. The Assessin....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... & 21, he submitted that the payments were made from his savings and from his wife's savings and also from loan taken from the relatives and friends. He promised to submit the details later on because the details were not readily available. The appellant was also shown page No.7 to 26 which is sale deed of the flat wherein the sub registrar adopted jantri rate of Rs. 4,79,400/- as against the purchase price of Rs. 3,61,000/- for the stamp duty purpose. The valuation of the flat was got done by the appellant from the registered valuer in the month of January,2005 prior to the date of registration of sale deed. The appellant had admitted unaccounted cash payment of Rs. 2,00,000/- for purchase of flat and renovation in ^furniture and fixture. The appellant has never retracted from the statement of admission of unaccounted payment of Rs. 2,00,000/- either before the ADIT, Assessing Officer or any of the higher authorities. Although the appellant submitted during the course of statement recorded u/s.132(4) that the valuation of flat was got done for obtaining loan from bank but on perusal of the amount of loan granted, it is found that the loan of Rs. 4,00,000/- was obtained from th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tamp Duty Rs.40,270/- + Rs. 30300/- Rs. 70.570/- Rs.7.49.970/- Against this amount, the appellant could explain the source of payment of Rs. 4,00,000/-being loan taken from Canara Bank. For the balance payment, the appellant could not explain the source of investment in flat, furniture and fixture and the renovation etc. so, even if it is accepted that the higher valuation of flat .was got done for obtaining bank loan and jantri rate is accepted as correct investment along with undisclosed payment of Rs. 2,00,000/- admitted by the appellant, the unaccounted investment comes to Rs. 3,49,970/- for which the appellant could not explain the source and in .fact, considering the gross income declared, withdrawal for household expenses and investment and tax payment, there remains no accounted income for investment in flat and furniture and fixtures. 5.1 In view of the above facts and circumstances of the case, out of the addition made by the Assessing Officer, an addition of Rs.,3,49,970/- being unexplained investment in flat and renovation-thereof along with the furniture and fixture u/s.69B of the I.T. Act, is confirms and the balance amo....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... as per the valuer's report and amount paid as purchase consideration by the assessee and further valuation taken by Sub-registrar was a different figure. Ld. DR further submitted that assessee himself was having a certainty in his mind that there is some element of undisclosed investment in the flat and for this reason surrendered Rs. 2 lacs and the financial statement including balance sheet and cash book, 8. We have heard the rival contentions and perused the material on record. The issue revolves round the matter so as to arrive at the correct value of investment in the residential flat purchased by the assessee in a situation when during search operation various documents depicted different value of the residential flat were found and statement on oath u/s 132(4) of the Act was made by the assessee for surrender of Rs. 2 lacs as undisclosed investment in the flat. As per the documents found during search operation the valuation of flat as per Registered Valuer report was shown at Rs. 9,67,000/-, and purchase consideration including Stamp duty as per registered sale deed paid by the assessee for purchase of flat was Rs. 4,01,270/-, whereas valuation made by Sub-registrar for t....