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TMI Blog2011 (10) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... ained the details in respect of purchase of agriculture land and the actual purchase consideration paid thereon. Some copies of Registries contained actual sale consideration paid and the consideration shown in the sale deed. Statement of some parties were recorded. These statements revealed that the company has purchased agriculture land at higher value and sale deeds have been executed at lesser value. The AO in his order has referred to the statement of Shri Nagesh Bhaskar and Shjri Ram Kishor Jat. During the course of survey, statement of Shri Sunil Bansal, Director of the company was recorded. Incriminating documents found from the site office and other business places were confronted to him. He was also confronted with the statement of Shri Ram Kishore Jat and Shri Nagesh Bhaskar. The Director of the company admitted the fact that the company has made undisclosed investment in purchase of agriculture land wherein real transaction was recorded at a lesser value in the regular books of accounts. This fact was admitted by other Directors of the company namely Shri Atma Ram Gupta and Shri Vimal Singhvi. The director surrendered ₹ 5,57,72,494/- for financial year 2006-07 on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 006000787 khasra No. 1/1 Min 3 5 beegha Khasra No. 6/5 6 beegha (e) khasra No. 19/1 15 beegha Total 26 beegha 1 biswa ₹ 20,00,000 Rs.24,00,000/- ₹ 2,95,605/- 26 beegha 1 biswa X295605=77,00,510/- ₹ 53,00,510/- 2006001614 (a) Khasra No. 429/4 5 beegha 10 biswas (b khasra No. 432/1 4 beegha 13 biswa Total 3 biswa ₹ 20,00,000 ₹ 18,02,955/- 10 beegha 3 biswas x 18,02,955/- = 1,82,99,993/- ₹ 1,62,99,993/- In respect of registry numbers 2006000787, the purchase value paid over and above the consideration shown in the deed is ₹ 53,00,510/- while in annexure prepared by Director, excess consideration is ₹ 27,15,249/-. In respect of other registry No. 2006001614, these amounts are of ₹ 1,62,99,993/- and ₹ 40,60,976/-. The AO, therefore inferred that the assessee has shown less surrender of ₹ 1,48,24,278/- in his surrendered statement. The AO issued a show cause notice dated 21.12.2009 and in response to which the assessee filed the reply. Meanwhile the assessee filed an application before the Addl CIT, Jaipur u/s 144A of the Act. The Addl CIT issued directions u/s 144A. These directions are as under:- "I have e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entry on the Registry. Plea of the assessee that the noting on photocopy of registry is un-natural is an after thought. It was further submitted before the CIT(A) that the Director of the company prepared a statement indicating the details of various lands purchased, sale consideration as per sale deed, the amount shown in the books as advance against these lands over and above the sale consideration and the amount paid out of the books. The assessee in order to buy peace, offered ₹ 14.28 crores for assessment year 2006-07 to 2008-09. During survey, the survey team required Shri Mahesh Gupta, Accountant of the company to mention the rate of land per bigha on the photocopy of the registry. On two registries such rates were mentioned by him under signature but the practice was dis-continued as Shri Sunil Bansal made out a computerized statement of unrecorded consideration. In this computerized statement, the rate of land per bigha was not mentioned. During the course of survey a number of registries were impounded and none of the registry indicated any noting of rate per bigha mentioned by Shri Mahesh Gupta. It was the contention of the associate enterprise before the CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd surrender made by him, there appears no justification in changing the basis for addition that too only for two of the registries impounded out of several such registries impounded. When on other registries there is no mention of the actual consideration paid over and above what has been recorded in the books still surrender was made in respect of these registries and, therefore, there is no justification for considering only two registries for addition over and above surrender made. Not only Shri Mahesh Gupta was not confronted by the survey team on the entries made but he was not even confronted by the AO during the assessment proceedings. If the entries made basis for addition then other registries impounded which have no such noting should not have been considered for determining undisclosed investment as no evidence was available on the registries regarding unaccounted payments made in respect of those transactions. The addition made by the AO is not justified and hence the same is hereby deleted. The AO is, therefore, directed to delete the addition of ₹ 3923278/- made as undisclosed investment u/s 69B. With this, first ground of appeal is decided in favour of the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch presumption. No effort has been made to show that the price paid in respect of two purchase of the land in the registered deeds referred to above is as per annexure prepared by the Director at the time of survey. The fact that advance of ₹ 1,09,01,000/- was shown and it means that consideration over and above the consideration shown in deed and reflected in the statement prepared by Director is not correct. The Addl Commissioner in his directions has referred that an adjustment entry was made on 28.2.2008 i.e. after the survey. It clearly shows that surrender in respect of these two lands as per statement was doubtful. It is also true that the AO has also not made any effort to inquire about the rate of land per bigha which was purchased. The assessee has been given a credit of ₹ 1,09,01,000/- as the same was disclosed in the books of accounts. We, therefore, feel that the issue is required to be reconsidered by the AO and the assessee will get opportunity to rebut the documents found at the time of survey. On the documents there is noting by the Accountant and he has also put the signatures and is stated that the amount was paid by him and therefore, the AO will al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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