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TMI Blog2016 (2) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... d. CIT(A) has rightly taken the value as per jantri rate at ₹ 4,79,400/-. The assessee’s submissions that the income surrendered at ₹ 2 lacs during the statement given u/s 132(4) of the Act should not be given any cognizance as the same has been given on oath and has not been retracted in a reasonable time. Also the fact remains that assessee has been unable to support the opening capital balance of ₹ 6,52,730/- shown in the balance sheet before the lower authorities and nor has been able to submit financial statement of previous years to depict that how assessee has been able to arrive at this capital of ₹ 6,52,730/-. However, we agree to the value of the residential flat at ₹ 7,49,970/- arrive at by the ld. CIT(A) but we differ on the deduction which has been restricted by ld. CIT(A) to ₹ 4,00,000/- as received by assessee as housing loan because some element of savings of previous years cannot be eliminated and in the interest of natural justice, we think that assessee certainly should have possessed its own fund and also in view of the surrender made by the assessee we sustain the addition to ₹ 2,00,000/- and thus assessee will ge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r came to the conclusion that the fair market value of the flat is ₹ 9,67,000/- and after reducing the purchase consideration shown in the sale deed at ₹ 3,61,000/- the difference calculated at ₹ 6,06,000/- was treated as unexplained investment in the residential flat. 4. Aggrieved, assessee went in appeal before ld. CIT(A) who partly allowed the appeal by restricting the addition to ₹ 3,49,970/- and observed as under :- 5. I have considered the submissions and the arguments of the learned counsel for the appellant and also carefully gone through, the order. The Assessing Officer has made the addition on the basis of difference of valuation of flat No.402, Vaishnavi Apprts., City Light Area, Surat done by Shrt Mahendra P. Goyal, Chartered Engineer and Registered Valuer on 4.1.2005 in which the value of flat (1156 sq.ft.) along with fixed furniture is done at ₹ 9,67,OOOA and safe deed dtd. 25.1.2005 for the same flat was registered at Rs,3,61,000/-. The case taws relied upon by the learned counsel for the appellant as mentioned in para 4.4 of this order are mainly related to the valuation report of the DVO whereas in the present case, the valuati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the loan of ₹ 4,00,000/- was obtained from the bank as against valuation of ₹ 9,67,000/- which come to 40% of the value of the flat. Normally, the bank grants 85% of the value of property to the borrower and it is clear from the valuation report that the flat was only 3 % years old. During the course of the appellate proceedings, the details of income, investment and tax payment and withdrawal from bank were called for and it is found that the appellant was having income from salary only and the details of income and withdrawals are as under: A.Y. Gross Income declared Inv. for tax savi Tax payment Balance Withdrawal household exper 2001-02 Rs.1,10.400/- Rs.19,304/- Rs.91,096/- Rs.60,000/- 2002-03 Rs.1,10,400/- Rs.28,834/- Rs.81,566/- Rs.60,000/- 2003-04 Rs.1,10,400/-; Rs.24.373/- Rs.85,527/- Rs.60,000/- 2004-05 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture and fixture and the renovation etc. so, even if it is accepted that the higher valuation of flat .was got done for obtaining bank loan and jantri rate is accepted as correct investment along with undisclosed payment of ₹ 2,00,000/- admitted by the appellant, the unaccounted investment comes to ₹ 3,49,970/- for which the appellant could not explain the source and in .fact, considering the gross income declared, withdrawal for household expenses and investment and tax payment, there remains no accounted income for investment in flat and furniture and fixtures. 5.1 In view of the above facts and circumstances of the case, out of the addition made by the Assessing Officer, an addition of Rs.,3,49,970/- being unexplained investment in flat and renovation-thereof along with the furniture and fixture u/s.69B of the I.T. Act, is confirms and the balance amount of ₹ 2,56,030/- is directed to be deleted. The appellant gets relief of 2,56,030/- 6. In the result, the appeal is partly allowed. 5. Aggrieved, the assessee is now in appeal before the Tribunal. 6. The ld. AR submitted that valuation report by the Registered Valuer as discussed above is not relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sclosed investment in the flat and for this reason surrendered ₹ 2 lacs and the financial statement including balance sheet and cash book, 8. We have heard the rival contentions and perused the material on record. The issue revolves round the matter so as to arrive at the correct value of investment in the residential flat purchased by the assessee in a situation when during search operation various documents depicted different value of the residential flat were found and statement on oath u/s 132(4) of the Act was made by the assessee for surrender of ₹ 2 lacs as undisclosed investment in the flat. As per the documents found during search operation the valuation of flat as per Registered Valuer report was shown at ₹ 9,67,000/-, and purchase consideration including Stamp duty as per registered sale deed paid by the assessee for purchase of flat was ₹ 4,01,270/-, whereas valuation made by Sub-registrar for the purpose of collection of Stamp duty as per sale deed was shown at ₹ 4,79,400/-. During assessment proceedings before the lower authorities assessee has submitted that valuation report should not be taken as a basis for valuing the flat because ..... X X X X Extracts X X X X X X X X Extracts X X X X
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