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2014 (11) TMI 557 - HC - Income TaxLiability to pay tax – DVO’s valuation accepted and difference in the cost of construction to be set off against expenditure incurred for the construction – Whether the Tribunal were correct in holding that the difference in the investment in construction of the building as declared by the assessee and worked out by the Valuation Officer cannot be treated as the income of the assessee u/s 69, 69B/69C of the Act as the building should be treated as stock in trade - Held that:- As the AO invoked Section 142-A of the Act and got DVO appointed for the purpose of valuation, no such power is conferred u/s 69C to such AO - Section 69C is not attracted to this case - The proviso to Section 69C is confined to Section 69C only - No such proviso is found in Section 69C and therefore, the proviso to Section 69C cannot be read as proviso to Section 69B - In terms of Section 69B, the excess amount may be deemed to be the income of the assessee for such financial year - when the excess amount is in the nature of the investment on building and the building is sold to prospective purchaser, that investment is in the nature of expenditure – that unexplained income has to be set off against the expenditure and the net tax could be 'nil' and that the Appellate Authorities dismissed both the appeals and held that it is strictly in accordance with law – the order of the Tribunal is upheld – Decided against revenue.
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