9911796707
TMI Blog2022 (4) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... he hands of the assessee based on evidences gathered during the course of search which are not rebutted by the assessee. Hence, we confirm the orders of lower authorities on this issue and this issue of assessee s appeal is dismissed. Addition of rate difference of sale value between the developer and the land owners - HELD THAT:- This extent of land of 29744 sq.ft., was sold by assessee to Shri M.N. Palani in assessment year 2008-09 i.e., Plot Nos. 1 to 13 Shop No.1. The fact regarding sale by assessee to Shri M.N. Palani is recorded in the seized documents but there is no mention of repurchase by assessee of the same land. The AO has just made inference and nothing else. As the AO has drawn inference only and there is no iota of ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15). During the course of search, assessee s partner Shri S. Asokan deposed before the search party and in his sworn statement recorded on 21.06.2011, he narrated that ₹ 46,70,660/- is the share of consideration belonging to the assessee. The relevant question Nos.14 15 and answers reproduced in the assessment order are being reproduced for the sake of clarity:- Q.14 In page No.1 of the seized material ANN/PM/B D/S-2, a notings were made. Please go through the same and explain the contents. Ans. ₹ 46,70,663 is the share of the consideration to Mr.K. Niranjanaiah for the sale of plot No.01 to 13 and Plot No.28 to 38 84 to Mr. Palani Q.15 What is the extent of the land sold and at what rate it was sold? Ans. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of income. Therefore, the AO issued show cause notice that as to why a sum of ₹ 32,27,715/- at the rate of ₹ 140/- per sq.ft., whereas the actual rate is ₹ 175 ₹ 40 admitted rate per sq.ft., be not added to the returned income of the assessee. The assessee first tried to explain that sale of plots in the layout of plot bearing no.28 to 38 and 74 was very slow and therefore, the firm wanted to dispose the plots at the best rates available and that was ₹ 40 per sq.ft., instead of ₹ 175/-. But, the assessee alternatively offered a sum of ₹ 32,27,715/- to tax to buy peace with the Department. The AO has not believed the explanation of the assessee and added the difference of ₹ 32,27,715/- as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held as continued to be assessed in the hands of the firm. Assessee gets part relief. Aggrieved, now assessee is in appeal before the Tribunal. 5. We have heard rival contentions and gone through the facts and circumstances of the case. The assessee s counsel has not disputed the rate of plot sold at ₹ 175/- in the layout of plot Nos.28 to 38 and 74. He only pleaded mercy that a further estimate can be made because all plots cannot be sold at the rate of ₹ 175/- and assessee himself have declared the rate at ₹ 40 per sq.ft. Admittedly, the Revenue is not in appeal against deletion of addition by CIT(A) to the extent of 50% holding that the same is to be equally divided between two partners namely Shri K. Niranjaniah ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly sold by Shri M.N. Palani to M/s. VGN Developers Pvt. Ltd. (hereinafter the VGN ) and the encumbrance certificate were furnished to substantiate the sale by Shri M.N. Palani to VGN. The AO noted that this is a fact. As per seized records Shri M.N. Palani has sold these plots to VGN this year but he presumed that Shri S. Asokan and Shri Niranjanaiah have shared this sale consideration at the rate of ₹ 175/- per sq.ft., on sale of these plots. According to AO, 50% share of sale consideration has been paid to Shri Niranjanaiah before 29.03.2010. Accordingly the AO inferred that after having sold the extent of land of 29744 sq.ft., to Shri M.N. Palani in assessment year 2008-09, the assessee has unofficially repurchased the plots with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.4. The AO referred to assessee s letter dated 05.07.2011 and the ld.counsel for the assessee referred are as under:- The land measuring 206664 sq.ft. was sold to M/s. VGN at the rate of ₹ 175/- per sq.ft. likewise the firm had sold 23909 sq.ft. to Shri Palani his brothers at the rate of ₹ 60/- per sq.ft. This was because the land sold to Palani his brothers was undeveloped and required filling-up, leveling etc., in order to buy peace with the department, we shall be offering ₹ 40,70,000* and ₹ 27,49,535/- as additional income in the hands of S. Asokan and in the partnership firm, M/s. Ashok Niranjan-Ashok Residency Housing Division, respectively. *₹ 40,70,000 was the cash seized from the residence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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