Case Law Details
DCIT Vs E.T. Infra Developers Pvt. (ITAT Delhi)
ITAT Delhi held that addition alleging different rates quoted/ booked for the same area and same property unsustainable as buyers to whom the space have been sold have admitted to have purchased at the price shown and no other cogent or corroborative evidence brought on record.
Facts- The assessee is in the business of Real Estate and was developing World Trade Tower (WTT) in Noida, U.P. In A.Y. 2011-12, based on certain website launched by one of the property brokers wherein the said broker had shown the launched price at Rs.9,500/- per sq foot irrespective of the floor size and location of the area. In the books of account, the assessee stated that majority of the area was sold at Rs.6,500/- per sq foot, but certain area was sold at Rs.9,000/- per sq foot through one broker Mr. Naresh Grover of Nagpur and the difference in amount was paid to the said Mr. Naresh Grover. During the course of assessment proceedings, AO enquired from various persons who had booked the unit in the tower and almost all the persons had confirmed the price at which it was recorded in the books of account.
However, while framing the assessment for A.Y. 2011- 12, AO, in spite of such information available on record, proceeded to frame the assessment, thereby applying Rs.9,500/- per sq foot being rate available on the website, out of which 15% rebate had been allowed as discount and the net rate applied by AO was worked out at Rs.8,075/- per sq foot. Thereafter, AO, after applying such rate of Rs.8,075/- to the area booked, had made the addition in the hands of the appellant. CIT(A) deleted the addition and ITAT affirmed the order of CIT(A).
For A.Y. 2012-13 and A.Y. 2013-2014, AO made additions on the same ground.
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