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2011 (8) TMI 514 - AT - Income TaxAddition - Unexplained investment - Search and seizure action u/s 132 - Cost of construction as estimated by the District Valuation Officer - The Assessee's books of account are written on day to day basis over the number of years which has not been disputed - According to the assessee, the books contained actual expenses incurred in construction of mall - The books of account of the assessee are not as such rejected - The difference between the DVO's opinion and assessee's books is 3.86 per cent - Revenue contends that the percentage may not be looked into as the consequential amount is very large - the assessee's books are regularly maintained, audited and the construction spreads in years - The seized documents have been offered to be explained - A flat rate estimation involving a difference of 3.86 per cent without giving the rebates about group's own supervision and bulk purchase of materials cannot properly substitute the cost of construction regularly reflected in the books of account of the assessee unless cogent and plausible reasons are established - the alleged incriminating material has been explained by the assessee -Thus,unable to agree with the learned DR that though the difference of 3.86 per cent is small percentage concept may be ignored - An estimate ultimately remains an estimate and the element of difference is to be looked from percentage point of view - Therefore, a shaky difference of 3.86 per cent on a DVO summary valuation as mention is to be ignored - Decided in favour of assessee.
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