Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (9) TMI 157 - HC - Income TaxDifference in the estimated cost determined by the Valuation Officer and the actual cost - addition of undisclosed income - assessee contested against reference made to the Valuation Officer for valuation of the cost of construction - Held that:- On a plain reading of section 142A it is apparent that the question of estimating the value of any investment would arise only when the books of account are not reliable and accordingly the AO would first be required to reject the books of account before making a reference to the Valuation Officer, thus as rightly contended by the assessee that the report of the Valuation Officer cannot form the foundation for rejection of the books of account. From the tenor of the order of the AO it is apparent that he has made the reference to the Valuation Officer merely to seek expert advice regarding the cost of construction. There is nothing in the assessment order to suggest that the AO had any doubt regarding the cost of construction or that he was not satisfied regarding the correctness or completeness of the books of account - prior to making the reference to the Valuation Officer, the AO has not ascertained as to what was the defect in the cost of construction disclosed by the assessee in its returns of income - as the AO has not brought any material on record to establish that the assessee had made any unaccounted investment in the construction of the building in question and that the books of account do not reflect the correct cost of construction the reference made to the Valuation Officer for estimating the cost of construction was not Valid - in favour of assessee.
|