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TMI Blog2013 (6) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... t period of time. Hence remit the issue to the file of AO to re-work the sale consideration of the plots and thereafter, decide the issue in accordance with law. Under-valuation of closing stock - Held that:- Merit in the argument of the assessee that the entire cost of development is not to be taken into consideration but the land development costs as on 31.3.2003 has to be taken and therefore, the amount of Rs.13,18,478/- arrived by CIT is the difference in closing stock, has to be deleted. Inclusion of amount received as advance found in the balance sheet to income of the assessee - Held that:- As during the A.Y. 2004-2005, the assessee sold parts of land at Rs.17,85,600/- and income of Rs.4,01,760/- was offered. The assessee has a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Assessing Officer to complete the assessment as per the direction of the Commissioner of Income Tax. Hence, we condone the delay. 3. The assessee herein is an individual deriving income from real estate. For the A.Y. 2003-2004, he filed a return of income on 23.10.2003 admitting an income of Rs.1,41,00,982/-. Revised return of income was filed on 21.9.2005 admitting income of Rs.3,47,152/-. The Assessing Officer conducted survey on 2.11.2004. Thereafter, he issued notice under section 148 on 20.1.2005 to which the assessee filed the revised return of income on 21.9.2005. The Assessing Officer completed the assessment under section 143(3) read with section 147 on 30.12.2005 determining the total income at Rs.3,93,380/- and accepti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatement that the sale of plots was at Rs.250/- per sq. yard. 6. Further, the learned Counsel submitted that there is no basis for arriving at such a price as there was no documentary evidence found during the course of search of survey to show that the assessee has sold the lands at Rs.250/- per sq. yard and the Assessing Officer had not even examined the purchaser of the plots. Hence, it was submitted that the gain on sale of plots by calculating the sale consideration of Rs.250/- per sq. yard is incorrect. 7. With respect to the advances received, added by the Assessing Officer for an amount of Rs.7,59,943/- the assessee submitted that the plots were sold in the immediately succeeding year and shown as sales. Therefore, the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... guments made by him that in a confused state of mind, he had accepted the sale of plot at Gurramguda at Rs.250/- per sq. feet and the sale of plot at Badangapet would not be at such higher rate as that of Gurramguda has to be considered. Further, the Assessing Officer shall enquire with the purchasers of the plots and has to determine the correct value after ascertaining the rate which is prevalent in that area at that period of time. Hence, we remit the issue to the file of the Assessing Officer to re-work the sale consideration of the plots and thereafter, decide the issue in accordance with law. 10. With respect to ground No.4, objecting to the Commissioner of Income Tax holding that there is under-valuation of closing stock as on 31.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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