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TMI Blog2012 (7) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... 22,50,000 to Ac. 3.37 guntas. It is also submitted that Sri.P. Rajesh Kumar Jain was General Manager who also represented at the time of purchase of above two pieces of land which is as per the sale deed dt. 19.6.2006. The above both pieces of land are at same location and survey numbers and are also adjacent to each other. The Assessee company has disclosed full purchase cost of the above pieces of land, whereas the Assessing Officer has taken the purchase cost of the above two pieces of land at Rs. 75,00,000 and Rs 98,12,500 and the difference of the admitted cost and the undisclosed cost worked out by the Assessing officer is at Rs 1,30,62,000 which was taken treated as unexplained investment u/s 69B of the IT Act. 5. The facts of the case as can be culled out from the Assessment order is as under: During the course of search proceedings in the case of M/s CSK Realtors Ltd conducted on 24.8.2006 copies of sale documents entered into by the company for purchase of agricultural lands were found. In the material seized in the CSK Realtors Group of cases, there is a copy of sale deed dated 29.6.2006 which shows that the company has purchased land from Sri Y. Parthasaratht admeasu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further it was explained that to make a square land and increase profitability the other land was purchased @ 25 lakhs per Acre as the seller of the land came to know that adjacent piece of lands have been purchased. 8. The contention of the assessee was not accepted by the AO. From the facts available on the documents seized it is seen that all the lands are in the same village and are located in the same survey nos. i.e. 40,41 and 42/1 adjacent to each other. The contention of the assessee that the land admeasuring Ac. 3.00 guntas is located on the rear side was not found to be correct by AO as it is located right along side the National Highway. Further the main contention of the assessee that seller of land to M/s Bhagyanagar Metals Ltd came to know about the adjacent land purchased by the Company and has demanded a price of Rs 25 lakhs per acre is seen to be not correct by the AO. 9. In the sale deed made on 19.6.2006 for land admeasuring Ac 3.37 guntas which was shown to have been purchased @ Rs 5,70,000 per acre, Shri Madhu Venkateshwar has signed as witness no.2. Sri Madhu Venkateshwar is the owner of the land admeasuring Ac.6.22 guntas which was purchased by M/s Bhagyan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is argued that the AO had no evidences whatsoever to say that the assessee company had paid similar cost as paid by m/s Bhagyanagar Metals ltd., It is also argued that Sri Madhu venkateshwar was witness at the time of purchase if two pieces of land by the assessee company cannot be a reason to say that assessee company had paid similar purchase price as it presumed by the Assessing Officer. 12. It is also pointed out by the AR Shri A.V. Raghuram that Sri Madhu venkateshwar happened to be owner of the land which was sold to M/s Bhagyanagar Metals Ltd and he also happened to be witness to two properties sold by Sri. Y. Parthasarathy and Smt. S. varalaxmi to the appellant company. Therefore it is argued that since Sri Madhu Venkateshwar has received the higher value of consideration for properties sold cannot be the reason that the other sellers had received similar sale consideration from the appellant company even though the lands sold are adjacent to each other. Therefore, in view of the above finding, it is argued by the Authorised Representative that the AO is not justified to make an addition of Rs 1,30,62,000 towards the receipt of higher sale consideration, hence pleaded t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts filed, itself lists out the document Nos. assigned by the registration authorities which are as follows: S.N Document No. Date of Document Extent (in Sq.Y.) Rate Per Sq.Yds.) (Rs.) Schedule of Property 1 8769/2006 13.7.2006 240 150 Plot No.162, S.III, Ad.240 Survey No.40&41, Grand Vile, Gandiguda Village, Ghansimiyaguda Gram Panchayat 2 10816/2006 13.7.2006 240 150 Plot No.29, Sec.III, Ad.240 Survey No.40&41, Grand Vile, Gandiguda Village, Ghansimiyaguda Gram Panchayat 3 10817/2006 13.7.2006 240 150 Plot No.12, Sec.III, 240 S.Y Survey 40&41, Grand Ville, Gandiguda Village 4 11127/2006 18.9.2006 240 150 Plot No.22, S.III, Survey 40 & 41, 240 S.Y. Grand Ville, Gandiguda Village, Ghansimiyaguda Gram Panchayat 5 11761/2006 28.9.2006 240 150 Plot No.22, S.III, Survey 40 & 41, 240 S.Y. Grand Ville, Gandiguda Village, Ghansimiyaguda Gram Panchayat 6 12059/2006 7.10.2006 240 150 Plot No.150, S.III, 240 Sq.Y. Survey 40 & 41, 240 S.Y. Grand Ville, Gandiguda Village, Ghansimiyaguda Gram Panchayat 7 12441/2006 16.10.2006 240 150 Plot No.37, 240 S.Y. Survey 40 & 41, 240 S.Y. Grand Ville, Gandiguda Village, Ghansimiyaguda Gram Panchayat 8 128 ..... 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