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TMI Blog2012 (2) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... n conjectures or surmises. As regards the statement of the Accountant, the Tribunal has taken a possible view by holding that the statement pertained to the free sale component in respect of which no addition has been made on flats sold to outsiders. As noted by the Tribunal, no addition has been made in respect of the sale of flats to outsiders in the free sale component. Hence, no substantial question of law would arise. The Appeal is accordingly dismissed. - INCOME TAX APPEAL NO. 1196 OF 2011 - - - Dated:- 23-2-2012 - DR.D.Y.CHANDRACHUD M.S. SANKLECHA, JJ. For the Appellant: Mr. Vimal Gupta with Mr. P.C. Chhotaray and Ms. Padma Divakar For the Respondent: Mr. V. Sridharan, Senior Advocate with Mr.Atul K. Jasani and Mr. P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A category buildings are those constructed prior to 1940. Under Development Control Regulation 33(7) read with Appendix 3 the redevelopment has to be supported by the written consent of not less than 70% of the occupiers of the old buildings. Each occupant is to be rehabilitated in a redeveloped tenement with a minimum carpet area of 225 sq. ft. and a maximum carpet area of 753 sq.ft. in the case of residential occupiers. Subject to the aforesaid limits each occupier is entitled to an area equivalent to the area occupied by him. Nonresidential occupiers are to be given an equivalent area. The list of occupants is certified by the Mumbai Buildings Repairs and Reconstruction Board. 3. In the present case a search action took place on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the worksheet which was annexed to the assessment order computed the area alloted to the tenants in excess of what they were entitled to under the provisions of Development Control Regulation 33(7) and valued it at the prevailing market rate. On this basis an addition was made to the income of the assessee. On the second count, the Assessing Officer regarded that fifteen persons who had been inducted on the basis of them being tenants were actually not genuine tenants. 4. The addition came to be deleted by the Commissioner (Appeals) and the order of the Commissioner has been affirmed by the Tribunal. 5. In the present case, reliance was sought to be placed inter alia on a statement made by the accountant, Suresh Kolhatkar during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y retracted. But apart from that, the statement showed that the developer had charged additional amounts in respect of the free sale component which consisted of a structure of 45 floors. Now as regards the sale made to outsiders in the free sale component, no addition was made by the Assessing Officer on the basis of the statement of the Accountant and the sale value declared by the assessee in those transactions has been accepted by the Assessing Officer. Consequently, the Tribunal held that the Assessing Officer could not have relied on that statement to conclude that the assessee had received on money from the old occupants. 7. As regards the ground for the second addition the Tribunal noted that the list of tenants was certifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature and source is not regarded as satisfactory by the Assessing Officer. A presumption, it was held, will therefore arise under Section 68 which was not rebutted. The Supreme Court held that the taxing authorities were entitled to look into surrounding circumstances to find out the position in reality applying the test of human probabilities. The apparent in such cases, is not real. 9. In the present case it is not in dispute that neither the provisions of Section 68 nor the provisions of Section 69 are attracted. Neither of those provisions is sought to be pressed in aid. The Assessing Officer, significantly in respect of the free sale flats accepted the stated consideration and has not made any addition, as noted by the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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