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TMI Blog2011 (4) TMI 935X X X X Extracts X X X X X X X X Extracts X X X X ..... e two values are not comparable. Therefore, addition made by A.O. adopting rate of fully constructed unit as provided in Stamp Duty Ready Reckoner for rate of purchase of TDR and stating the difference in both rates multiplied by area as undisclosed investment in purchase of TDR is erroneous. Decided against the Revenue - ITA No. 3287/Mum/2010 - - - Dated:- 29-4-2011 - ORDER This appeal preferred by the Revenue is directed against the order dated 1.2.2010 passed by the ld. CIT (A)-4 for the Assessment Year 2006-07-.2. The facts of the case in brief are that the assessee is engaged in construction activity. It has completed Phase I of a project at Malad comprising construction of industrial galas called Aditya Industrial Estate . Duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in mortgage deed Rs.2 cr, the AO concluded that assessee had made an explained investment. - On the basis of the rate of Rs.28,500 of fully constructed industrial building in Malad reflected in the Stamp Duty Ready Reckoner, the AO made an addition of Rs. 2,25,92,287 under sec.69B (Market value @Rs.28,500 Rs.3,64,80,000 less cost disclosed Rs.1,38,87,713 = Rs.2,25,92287/-. 3. On further appeal before the Ld. CIT (A), the Ld. CIT (A) held as follows: I have duly considered the submissions of the A. R. and I find that the appellant has explained the sources of purchase of TDR. The addition made by the A.O. is on account ofvaluation of TDR at market rate of buildings as per ready reckoner is not correct as the reckoner gives ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... py of information called for and received U/s 133(6) of the Act from office of the ft. Sub Registrar, Borivali Registration Officer, Borivali, in respect of the market value and the stamp duty paid on the same regarding TDR purchased on property bearing CTS No. 1068/C. As is evident on a perusal of the same, it is seen that the market value of the TDR is shown to be Rs. 2,00,00,000/- on which stamp duty of Rs.1,00,000/- has been paid which amounts to 0.5% of the market value. You are given an opportunity to explain the discrepancy between the amount declared by you and the amount shown in the stamp valuation as described above and also to give reasons as to why the difference be not treated as unexplained investments within meaning of secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rties. The Ld. Counsel for the assessee Shri Nayak submitted at page 1 of the Paper book a copy of Ready Reckoner from which it is clear that the same was meant for reference with respect to Stamp Duty and Market value of flats in Mumabi and not reference for TDR rates. There is a wide variation between value of TDR and value of fully constructed industrial building and the two values are not comparable. As rightly pointed out by the Ld. CIT (A), the AO s letter dt. 18.12.2008 shows that while examining the AIR transaction of. Two crores, the AO has mixed up the AIR transaction of two crores with purchase of TDR of Rs. 1,43,04,413/- and consequently made erroneous conclusion that there is undisclosed investment within the meaning of Sec. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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