TaxTMI 
TaxTMI 
2016 (8) TMI 1199
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....ioner of Income Tax (Appeals) erred in law and on facts of case in deleting the addition of Rs. 87,32,500/- made u/s 69C of the Act on account of unexplained expenditure. 3. (a) The order of the CIT(A) is erroneous and not tenable in law and on facts. 3. The assessee filed its return of income on 21st July, 2008 declaring an income of Rs. 47,58,310/- comprising income from salary, income from house property and from other sources as a senior citizen. Thereafter the assessee was issued a notice dated 7th June, 2010 under Section 148 of the Income Tax Act, 1961 wherein stated that income had escaped assessment and therefore the assessee was required to file the return of income disclosing true particulars thereof. The assessee filed a retu....
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....ifference i.e. Rs. 2,800/- per sq. ft. has been received in cash which comes to 2800 x 5000 = Rs. 1,40,00,000/-. Thus, it is evident that the assessee ihas concealed the particulars of income to evade tax. As these transactions took place during the Financial Year 2007-08, a notice u/s 148 is being issued" 4. Subsequently vide letter dated 2nd August, 2011 the assessee objected to the proposed assessment proceedings. The AO has passed the assessment order making an addition of Rs. 87,32,500/- under section 69C of the Income Tax Act. Assessee had acquired from M/s AMR Infrastructure Ltd. (and not M/s Real Gain Estate (P) Ltd as wrongly noted by the AO in the reasons recorded u/s 148 of the Act) 6000 sq. ft. area (and not 5000 Sq. ft. area a....
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.... 12.06.2007 Rs. 5,65,000/- Cheque no. 771439 dated 30/06/2007 Rs.43,03,000/- Rs.64,25,000/- Balance due at time of possession Rs. 10,75,000/- For 1,000 sq foot area; Total consideration = Rs.15,00,000/- Less: Paid by assessee: Cheque no. 462468 dated 4/5/2007 Rs. 12,85,000/- Balance due at time of possession Rs. 2,15,000/- 7. As regards M/s Real Gains Estate (P) Ltd it was submitted that no investments were made by the assessee with them. Actually the relationship between assessee and M/s Real Gains Estate was that of a money lender and borrower. In this regard, it is submitted that a short term interest free loan of Rs. 43....
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.... M/s AMR Infrastructures Ltd. summons u/s 131(1 A) dated 16h April 2009 were issued to the assessee. In reply vide letter dated 22nd April 2009 the assessee submitted that it has purchased 6000 sq ft area on 6th floor for a total agreed sales consideration of Rs. 90 lakh. 10. During the course of assessment proceedings in the case of assessee, AO made enquiries from M/s AMR Infrastructures Limited. In this regard M/s AMR Infrastructures Limited confirmed to the AO that the rate at which property was sold to the assessee was Rs. 1,500/- per sq ft. 11. The Assessing Officer added Rs. 87,42,500/- as unexplained expenditure. Aggrieved by this, the assessee filed appeal before the CIT(A). The CIT(A) allowed the appeal of the assessee. The Reve....
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....sons that "as per the papers seized relating to the investment of the transaction of the assessee, the total cost of the office came to Rs. 2,15,00,000/- for 5000 Sq. feet which comes out to Rs. 4,300/- per Sq. feet and cost Rs. 1,62,32,500/- after some discounts". In the reasons it is noted by the AO that "in the 2nd part of the booking form the rate is mentioned as Rs. 1,500/- per Sq. feet making it clear that the difference i.e., Rs. 2,800/- per Sq feet has been received in cash which comes to 2800 X 5000= Rs. 1,40,00,000". It is submitted that in the reasons the AO has also noted a total discounted price for the property at Rs. 1,62,32,500/-. The per sq ft rate as per this is Rs. 3246.50. The difference in such a case should be Rs. 1746....