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2011 (5) TMI 409 - AT - Income TaxReassessment - Reference to the Valuation Officer after issuance of notice u/s 148 - sufficient evidence - held that:- there has been a personal visit by the Inspector to the assessee's premises in the course of a survey. - he had first-hand exposure to the building and made first-hand enquiries, including qua the assessee's accounts. It is the credibility of this information, gathered first-hand, and on which he relies, and the truthfulness in reporting the same - it was not necessary for the Assessing Officer to verify the information conveyed to him before placing reliance thereon - Decided against the assessee. Regarding reference to valuation officer - assessee contended that reference under section 142A is invalid in the absence of any defects being pointed out by the Assessing Officer - held that:- When the law itself considers that the Assessing Officer may not be as proficient or possess the requisite expertise, so that he could refer for valuation of the investment concerned to the VO, where is the question of his sitting in judgment in the matter, i.e., without having the informed opinion of the expert, expressed after considering all the relevant materials, including the assessee's explanations & the books of account - But that is a matter, firstly, of fact and, secondly, a matter subsequent, i.e., only after reference under section 142A is made, and at the time of its implementation by the VO - Decided against the assessee. whether the rejection of accounts is a prerequisite for invocation of section 69 or section 69B - Held that: VO has considered the books of account at para 1.1 of his report under the heading the 'Method Adopted', stating therein as to why the 'accounting method' is not adopted by him - It is the reasonableness of the Assessing Officer's finding as to the non-satisfaction with the assessee's explanation, on which the validity of the addition under section 69, in the final analysis, depends - the assessee's contention is neither valid legally or in the facts of the case; the books having been found relevant, though not bearing the full cost of construction. Taxability of excess investment u/s 68B - relevant assessment year - Section 69B mandates the deeming of unexplained investment made during a particular year as the assessee's income for that year. As such, there is no scope whatsoever to treat the entire unexplained investment as having been made during the current year. The assessee's books of account clearly show the investment as being made since financial year 1997-98. - Decided in favor of assessee.
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