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TMI Blog2011 (7) TMI 1396X X X X Extracts X X X X X X X X Extracts X X X X ..... utiny by the AO. The AO, therefore, issued a notice and questionnaire u/s 143(2) on 22.9.2009. The assessee's Authorized Representative had appeared before the AO and furnished relevant details as required. 3. During the assessment proceedings, it was noticed by the AO that the assessee purchased certain properties during the year under consideration. A reference u/s 142A of the Act was made by the AO to the DVO for determining the fair market value at the time of acquisition of the following properties acquired by the assessee during the relevant year:- (a) Residential Plot of 160 sq. yd. at Sector-4A, Dharuhera, Rajasthan. (b) Residential Plot of 311.11 sq. yd. at Uppal's Southend, Sohna Road, Gurgaon. 4. The Valuation Officer vide his report dated 18.12.2009 estimated the value of the above properties as under:- Property Details Purchase value reported by the Assessee FMV determined by the Valuation Officer. Difference between the FMV by the VO and value reported by the assessee. Residential Plot of 160 sq. yd. Rs.2,00,000/- Rs.5,12,000/- Rs.3,12,000/- Residential Plot of 311.11 sq. yd. Rs.16,56,652/- Rs.25,45,030/- Rs.8,88,378/- 5. Since there was a difference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of a new clause in section 56 of the Act dealing with such difference between reported sale consideration and District Circle Rates. e) The Valuation report of the registered Valuation Officer submitted by the assessee is very vague inasmuch as the Valuation Officer had arrived at value after taking into account comparative sale instances but he valued the property at a value more than that of comparative sales instances without giving any basis. 7. In the light of the aforesaid reasons, the AO made the addition of difference amount of Rs.2,33,098/- (Rs.3,12,000/- - Rs.78,902/-) and Rs.8,88,378/- as the unexplained investment of the assessee. 8. Being aggrieved, the assessee preferred an appeal before the learned CIT(A). 9. Before the learned CIT(A), the assessee made a detailed submission and arguments as narrated by the learned CIT(A) in Para 3.1(a) to 3.1(i) at pages 2 to 9 of his order. 10. After considering the assessee's submissions and the findings of the AO, the learned CIT(A) deleted the addition by observing and holding as under:- "4.1(a) The written as well as oral submission(s) of the appellant and findings of the AO in the order of assessment have been c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der statement of purchase consideration. She further contended that the reference made u/s 142A was valid and nothing has been pointed out by the learned CIT(A) or by the assessee to render the same to be void and without jurisdiction. It was further contended by the learned DR that the assessee has failed to rebut the DVO's finding and the value ascertained by him. She, therefore, contended that the CIT(A) was not justified in deleting the addition of Rs.11,21,476/- on account of difference in value shown by the assessee and the value determined by the DVO. 13. The learned counsel for the assessee reiterated the contentions and arguments made before the CIT(A) which are narrated by the learned CIT(A) in Para 3.1(a) to 3.1(i) at pages 2 to 9 of his order. 14. We have considered the rival contentions of both the parties and have carefully perused the orders of the authorities below. 15. In this case, the assessee has acquired by way of purchase of two residential plots situated at Dharuhera and Sohna Road, Gurgaon respectively. The purchase value shown in the sale document of Rs.2,00,000/- and Rs.16,56,652/- respectively. The assessee has also paid the sum of Rs.78,902/- in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances where the land was sold at Rs.2913/- and Rs.2700/- per sq. yd. The sale instances referred to by the Registered Valuer has not been found to be not relevant by the departmental authorities having regard to the nature and location of the land of the assessee vis-à-vis the land of comparable cases. 16. We further find that the circle rates are fixed in respect of any specific area covering all the plots of land falling within that area. In the present case, the assessee has pointed out certain negative factors in respect of both the plots. From the AO's order, we find that the AO has not disputed the existence of negative factors pointed out by the assessee. The AO has merely rejected the assessee's contention with regard to the negative factors by saying that the district circle rates for properties are arrived at after taking into account all the relevant factors. The AO has not considered the fact that the district circle rates for properties are arrived at for whole of the specified area and not with reference to each and every plot falling within that area. Therefore, the negative factor pointed out by the assessee in respect of plots purchased by him as against th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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