TaxTMI 
TaxTMI 
2021 (6) TMI 653
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.... deem it just and proper to dispose these appeals by way of this common order. 2. Brief facts of the case are that the assessee is a company and as the name indicates is involved in construction activities. Search and seizure operation under section 132 of the Income Tax Act, 1961 (for short "the Act") was carried out in the case of M/s. JKG Constructions Pvt. Ltd. belonging to the JKG group on 04/08/2011 and during such search certain documents were found. Such documents include a calculation sheet for booking flat by one Sh. Chaya Singh and Bhuwan Prakash Yadav signed by Chhaya and JK Goel showing the total cost of the flat as Rs. 48,83,625/-, dated 29/3/2011 for Rs. 31,30,750/-, a payment clearance dated 28/3/2011 and a Kachi Parchi dat....
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....nsideration because the sale of flats by builders is always subject to negotiations and the final consideration differs from the initial prices basing on the down payments or delays in handing over possession which results in reduction of price. Assessee contended that in respect of flat No. A-802 the initial cost of Rs. 3,600/- per square feet was renegotiated to Rs. 2,300/- per square feet by down payment of Rs. 16,40,000/- on 9/11/2010 and promise of remaining payment within 6 months. So also in respect of flat number A-601, the said plot was booked on down payment basis which carried a discount. Ld. CIT(A) considered these contentions, accepted the same and directed the additions to be deleted. 5. Revenue is, therefore, aggrieved by su....
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.... he prayed that the order of the Ld. CIT(A) need not be interfered with. 8. We have gone through the record in the light of the submissions made on either side. It is a fact that in the search operation, even according to the Revenue, the documents that are found relate only to 2 flats, namely, A-601 and A-802. Insofar as flat number A-601 is concerned the documents are that the letter dated 30/7/2008 requesting the allottee by name RK Gauba to pay a sum of Rs. 1,54,910/- out of the total sale consideration of Rs. 30,57,800/-. Though the subsequent agreement in favour of Smt. Pushpa Gouba shows the sale consideration as Rs. 23,37,650/- on the ground that in view of the down payment such sale carried discount at 15% reducing the initial pri....
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....to the prevailing market value of the plot vis-à-vis the figures mentioned in the documents. 10. Now coming to the omnibus additions made by the learned Assessing Officer for all the 3 years, basing on these documents relating to 2 flats, learned Assessing Officer, while stating that there was understatement of the cost of the flats by 36% and 26.5% respectively the average of which comes to 24.5%, extrapolated the same in respect of all the sales of plots that took place between the assessment year 2009-10 and 2011-12. It remains an admitted fact that insofar as the other flats are concerned no material whatsoever, much less incriminating material is forthcoming. It is only the imagination of the learned Assessing Officer that mere....