TMI Blog2013 (9) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... t and then only after he had rejected the books of account, he could have referred the matter to DVO for valuation for the purpose of assessment of income – In the present case, reference to valuation could not be made only to verify the investment disclosed in the construction of the building in books of account – Decided against the Revenue. - Income Tax Appeal No.-201 of 2013 - - - Dated:- 13-9-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the Appellant : Shambhu Chopra ORDER We have heard Shri Shambhu Chopra, learned counsel for the income tax department. This appeal under Section 260A of the Income Tax Act, 1961 is directed against the judgment and order dated 08.03.2013 passed by the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rejecting the books of account was not justified. The Tribunal further held as follows:- "The Apex Court in the case of Sargam Cinema v. CIT, 328 ITR 513 (SC) wherein the Hon'ble Supreme Court has view that the A.O. cannot refer the matter to the Departmental Valuation Officer without rejecting books of account. The Hon'ble Allahabad High Court in view of the law laid by the Apex Court, rejected the Revenue's contention in this regard in the case if CIT v. Lucknow Public Educational Society, 339 ITR 588 (All.)." In paragraph 17 of the order of the ITAT, the question of law has been discussed as follows:- "In the light of law laid down by the Apex Court in the case of Sargam Cinema v. CIT, 328 ITR 513 (SC) and CIT v. Lucknow Public Edu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He had to first find out whether the books of account were maintained properly, give opportunity to the assessee to explain any deficiency or discrepancy in books of account and then only after he had rejected the books of account, he could have referred the matter to DVO for valuation for the purpose of assessment of income. The reference to valuation could not be made only to verify the investment disclosed in the construction of the building in books of account. We do not find that the ITAT has committed any error of law in allowing the appeal and in setting aside the orders passed by the A.O. and CIT (A). The appeal does not raise any question of law to be considered and decided by this Court. The income tax appeal is dismissed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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