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2015 (5) TMI 1186 - ITAT CHENNAIReference of matter to DVO u/s.142A - AO has not rejected the books of account by pin pointing any defects in the books of account - HELD THAT:- In this case the assessee maintained books of accounts and duly furnished before the AO and he has not appreciated the same and only on presumption that cost of construction was very low, he referred the matter to DVO without properly rejecting the books of accounts maintained by the assessee. Reference to DVO u/s.142A(3) could be made when books of accounts are rejected by pinpointing defect therein. In other words, if the books of accounts are found to be correct and complete in all respect and no defect is pointed out therein and the cost of construction of building is recorded therein, addition referred u/s.142A (2) is not appropriate. Accordingly, we are of the considered view that in the present case when the AO has not rejected the books of account by pin pointing any defects in the books of account reference to the DVO is not valid and, therefore, DVO’s report could not be utilized for framing assessment even if such a report is considered to be obtained u/s.142A of the Act. Since reference to DVO being held as invalid, the assessment thereafter based on that DVO report also be invalid. - Decided in favour of assessee.
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