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2023 (8) TMI 866 - AT - Income TaxAddition u/s 153A - Undisclosed investment - additions made by AO were based on an incriminating material duly scanned in the assessment order - CIT(A) deleted the addition - HELD THAT:- We are of the considered opinion that Ld CIT(A) has examined and issued in light of the factual matrix of the case and legality of the applicability of the provisions of section 153A for reopening of the assessment for unabated years or years for which assessments are already competed or for the years for which assessment in regular course is already barred by limitation, cannot be done unless some incriminating material qua each of the AY’s which were sought to be reopened is unearthed during the operations of search and seizure conducted at the premises of the assessee. Since, in the present case such condition for invoking the provisions of section 153A for AY 2012-13 to 2015-16 could not be substantiated by the revenue, assumption of jurisdiction for these years was not justified. No reason to disturb the finding of the Ld CIT(A) on this ground. Whether rejection of books of account is mandatory or not for making a reference to DVO u/s 142A? - This has been discussed, deliberated and decided by the Ld CIT(A) without leaving room for any ambiguity, we therefor of the view that, ratio of law emanated by the order of ITAT Jabalpur in the case of Price Rai [2021 (7) TMI 1421 - ITAT JABALPUR] could not be applied in the present case, so the contentions of the revenue to restore the matter back to AO for fresh adjudication is not acceptable on this ground. Addition on the basis of DVO report - revenue contention that the Ld AO has validly invoked the provisions of section 142A of the act and therefore the additions made based on the report of the DVO by the Ld AO reduced by the Ld CIT(A) was an error and same needs to be corrected by setting aside the order of Ld CIT(A) and restoring back the order of the Ld AO - HELD THAT:- CIT(A) has decided the issues with a finding that the there were discrepancies in the report of DVO with respect to rates adopted by the DVO on a higher side and therefore a well thought relief of 30% on the valuation given by the DVO was granted to the assessee. The relief granted was based on the foundation of comparative figures of investment by the assessee and the estimate by the DVO where a margin of 30% has been considered on higher side, 25% on account of difference in CPWD and PWD rates and 5% for self- supervision. The decision of the Ld CIT(A) was duly guided by various judicial pronouncements by High Courts and coordinate benches of the ITAT, thus, in our considered opinion the same is on right footing. We therefore do not see any convincing reason to interfere with the findings of the CIT(A). Consequently, the appeals of the revenue dismissed.
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