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2014 (9) TMI 496 - AT - Income TaxValuation report u/s. 142(A) Reference made by AO - Estimated understatement of cost of construction Held that:- The AO had not accepted the assessee's valuation of plots owned by it but had made an estimate of the same and on appeal, the assessee urged that the WTO should be directed to refer the valuation of the said property to the valuation cell - CIT(A) accepted the contention of the assessee and directed the AO to get valuation done by the valuation cell u/s. 16(A) r.w.s. Rule 3D - CIT(A) erred in directing the AO to refer the matter to the valuation cell the CIT(A) himself could have referred the valuation of the building to the valuation cell - the AO made the assessment u/s 143(3) after elaborate discussion of the cost of construction - She referred to comparable cases and finally made addition of ₹ 15 lakhs - it was not permissible for even the administrative CIT to invoke his jurisdiction U/S 263 on the issue because of a valuation report obtained subsequently - If the administrative CIT could not exercise jurisdiction U/S 263, relying upon Girdhar Gopal Gulati vs Union Of India And Anr. [2004 (4) TMI 45 - ALLAHABAD High Court] the CIT(A) had no jurisdiction in appeal proceedings to call for a valuation report, which is the exclusive prerogative of the AO. Reference u/s 142A is not allowed after assessment or re-assessment - The AO has no jurisdiction to invoke section 142A after assessment or re- assessment - the CIT(A) also ceases to have any jurisdiction to press sec. 142A into service either himself directly or indirectly through the AO -the basic pre-requisite of sec.142A is satisfaction of the AO - When the AO makes a reference at the behest of the CIT(A), the valuation report so obtained has no legal validity and has to be ignored - as the assessment is already completed, the AO has no jurisdiction to make the reference u/s. 142A of the Act - the CIT(A) has clearly overstepped his jurisdiction and hence the order of enhancement by the CIT(A) has no legal sanction Decided in favour of assessee. Undisclosed investment determined by AO Amount added to cost of construction of hospital building - Held that:- Identity of the creditor, the creditworthiness of the creditor and genuineness of the transaction are proved by the assessee and the assessee has discharged her onus - Relying upon RB. Mittal Versus Commissioner Of Income-Tax [2000 (8) TMI 54 - ANDHRA PRADESH High Court] the addition is to be deleted as the assessee had satisfactorily proved.
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