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2007 (9) TMI 326 - ITAT LUCKNOW-BValidity Of Reference to the DVO u/s 142A - Difference between estimate of cost of construction as per DVO's report and what is shown by the assessee in the books - Whether reference to Valuation Officer could be made without finding any defects in the books of account and rejecting the books u/s 145? - HELD THAT:- In our considered view the provisions of section 142A cannot be read in isolation to section 145. In other words, if books of account are found to be correct and complete in all respect and no defect is pointed out therein and cost of construction of building is recorded therein, then the addition on account of difference in cost of construction could not be made even if a report is obtained within the meaning of section 142A from the DVO. It is because the use of the report of the DVO obtained u/s 142A is not mandatory but is discretionary as the word used is 'may' therein. Accordingly, we are of the considered view that in the present case when Assessing Officer has not rejected the books of account by pointing out any defects reference to the DVO will not be 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. Since reference to DVO being held as invalid, the assessment/reassessment framed thereafter would also be invalid. As a result, we uphold the order of the Ld. CIT(A) though on different grounds. We do not consider it necessary to deal with the other issues as they are of academic interest only. As a result, the assessments for the assessment years 1998-99, 1999-2000,2000-01 are also held invalid. Order of the Ld. CIT(A) is confirmed though on different grounds. Grounds of the revenue relating to this issue are rejected. Similarly, following our decision for assessment year 2001102, the orders of Ld. CIT(A) for the assessment years 2003-04 and 2004-05 are also confirmed though on different grounds. In the result, the appeals filed by the revenue for all these six assessment years are dismissed.
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