Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (2) TMI 890 - AT - Income TaxValuation of property - fair market value - assessee company has shown Rs.11,84,926/- as the purchase/investment in the said property, whereas the value of the property has been determined by the DVO at Rs.11,84,926/- - as per AO the difference represents the unexplained investment, in the shape of unexplained/unaccounted expenditure - Held that:- A perusal of the assessment order shows that the A.O. has not considered the objection filed by the assessee. It is further noticed that the CIT(A) has considered the objection and has found weight in the objection and had consequently made an ad hoc reduction of Rs.10 lacs from the addition made by the A.O. which was on the basis of the difference between the value as declared by the assessee and the value as estimated by the DVO. Once the CIT(A) has accepted that there is a difference between the comparative case taken by the DVO with that of the assessee obviously there cannot be any correction that can be made by the CIT(A) to such valuation. In these circumstances, the ad hoc reduction as given by the CIT(A) itself is wrong as there is no basis or method for the reduction. In fact, the defect having been accepted the valuation report itself was no more a reliable document for the purpose of making any addition and the addition itself, which has been made on the basis of such report is liable to be deleted in toto and we do so - appeal of the assessee is allowed.
|