RElated to Sec 69 B

This query is : Resolved

CA Manoj Pokharana (Querist)
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21 December 2010 There is an assessee who have purchased an under construction flat at an agreed value of Rs 15 lakhs in the year 1995. The flat got registered in the financial year 2007-08 at the stamp duty value of Rs 40 lakhs. The assessee got its possession in the same year. The assessee has shown the flat in its balance sheet at Rs 15 lakhs in 2007-08 (i.e. the agreed value). Will the difference (40-15 lakhs) be covered u/s 69B as investments not fully disclosed in books of accounts? What will be its consequences?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 December 2010 The assessee has to produce the relevant facts before the ITO. If copy of agreement
entered into on that time available, it must be produced. However I have got one case law with similar facts which is being
reproduced as under

Burden of proof is on revenue -
It is true that merely on the basis of fair market value no addition can be made under section 69B, but if on the basis of sufficient material on record some reasonable inference can be drawn that the assessee has invested more amount in purchase of plot than that shown in account books, then only the addition under section 69B can be made. The burden is on the revenue to prove that real investment exceeded the investment shown in account books of the assessee - Smt. Amar Kumari Surana v. CIT [1996] 89 Taxman 544 (Raj.).

CA Manoj Pokharana

CA Manoj Pokharana (Querist)
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23 December 2010 thk u sir ji

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