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2014 (7) TMI 871 - HC - Income TaxUnexplained investment – Valuation of property – Held that:- The assessee did not cooperate would not absolve the AO from adopting some methodology in arriving at the market value which according to him had not been disclosed by the assessee - The task of the DVO in the circumstances became crucial, he could not have indulged an arm chair exercise by merely issuing notices to the assessee - there was no basis for the AO to determine that the true value of the property was ₹ 1.25 crores, by adopting the return on capital method - The AO was under a duty first to ascertain what was according to him the true cost of the property - error could not have been compounded by adopting a completely different methodology without any positive finding as to the cost of acquisition. The addition made is purely based on estimate and conjecture and there is no substance in the estimate made by the AO, who in any case is not authorized to make any estimate under the provisions of section 142(2A) of the Income-tax Act - section 69/69B are deeming provisions and it is trite law that deeming provisions are to be strictly interpreted - AS there is no invoke section 69/69B therefore for this reason too the addition made is not sustainable in law – the AO is directed to delete the addition made for ₹ 74 lacs on account of unaccounted investment made by the assessee out of undisclosed sources of income – thus, no substantial question of law arises for consideration – Decided against Revenue.
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