2016 (7) TMI 1509

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....difference between the Circle Rate and Contract Value of the flat, whereas all the necessary evidence including sale deed etc. were filed during the course of assessment proceedings. 3. Brief facts of the case are that assessee had filed his return of income declaring income of Rs. 16,45,712/-. In the relevant assessment year the assessee carried out business as a builder, developer and civil contractor. The AO noticed that assessee had reported sale of properties amounting to Rs. 3,10,51,500/-. He called for the details of the sales with names, addresses and supporting evidence by way of the sale-deeds. From the details filed by assessee it transpired that assessee had sold on 1.10.2009 a property, namely, Flat no. GF-2, on Ground Floor....

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....ooks of accounts should not be rejected since only the actual sale consideration had been recorded in the books of accounts while the circle rate was only a notional price which cannot be recorded in the books." 4. The AO, after considering the assessee's reply concluded that though the addition was not made u/s 50C, but the disparity in price of same property sold by the assessee himself clearly leads to the conclusion that the property was sold below the market rate. He pointed out that circle rate merely provided a basis of reasonable estimation for value of the property in question. Taking clue from the valuation adopted by stamp valuation authorities at Rs. 34,90,000/-, the AO made addition of Rs. 12,40,000/- after rejecting the boo....

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....he basis of lower sale consideration being received for the ground floor property as compared to first floor property. This is not permissible in law, because there has to be some concrete evidence to come to the conclusion that assessee has not declared his full sale consideration. Reliance placed by ld. counsel for the assessee on the decision of Hon'ble Supreme Court in the case of A. Raman & Co. (supra) clearly support the assessee's contention. The Hon'ble Delhi High Court in the case of Discovery Estates Pvt. Ltd. has noted the Tribunal's findings in it judgment at page 4 in para 8, which are reproduced hereunder: "(a) The assessee is maintaining proper books of accounts and the Assessing Officer has not pointed out any speci....