TMI Blog2005 (3) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... have been not disputed. – Held that in the course of assessment proceedings, the Assessing Officer does not have power under the Act to refer to the Valuation Officer the question of the cost of construction of house property. Therefore, in this view of the matter, the reference made to the Valuation Officer was itself without jurisdiction and therefore any addition made in pursuance of such reference is liable to be set aside - Held that impugned addition is untenable - - - - - Dated:- 3-3-2005 - Judge(s) : SWATANTER KUMAR., MADAN B. LOKUR JUDGMENT The judgment of the court was delivered by Swatanter Kumar J.- The Commissioner of Income-tax, Delhi, has questioned the correctness and legality of the order passed by the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereferred, against the assessee, whereafter the assessee challenged the order of the authorities before the Income-tax Appellate Tribunal. Both the Revenue as well as the assessee went up in appeal before the Income-tax Tribunal. During the course of the hearing, though the assessee had raised various grounds it has been recorded by the Appellate Tribunal that only one ground was pressed, i.e., in regard to questioning the addition of Rs. 1,02,137 out of a total addition of Rs. 7,05,000. The Tribunal recorded its finding as under: "After hearing the rival parties we find that the entire addition was based on a contracted price of Rs. 25 lakhs adopted by the Assessing Officer purely on hypothetical considerations. As noted by us in the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... going in detail into the merits of the impugned issue, we are of the view that the said ground can be disposed of by adverting to the following short premise. That the Revenue has not doubted the sale consideration received. The impugned addition is only towards alleged low cost of construction and has been made merely on the basis of the DVO's report is also not disputed. Under the aforesaid undisputed circumstances, the impugned addition is untenable having regard to the decision of the apex court in the case of Smt. Amiya Bala Paul v. CIT [2003] 262 ITR 407. It is settled by the hon'ble apex court that in the course of assessment proceedings, the Assessing Officer does not have power under the Act to refer to the Valuation Officer the qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the proviso, nothing contained in the section shall apply in respect of an assessment made on or before September 30, 2004, and where such an assessment has become final and conclusive on or before that date except in cases where reassessment is required in terms of section 153A of the Act. Admittedly, there is no record before us to show that an opportunity was provided to the asses-see before the report of the Valuation Officer was taken into consideration by the Assessing Officer. Furthermore, it is also an admitted case that the order of assessment was made on March 31, 1999, much before the cut-off date and the order of the Commissioner of Income-tax (Appeals) was passed on January 12, 2000, and that of the Income-tax Appellate Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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