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2010 (7) TMI 786 - HC - Income TaxWhether Tribunal was right in law in upholding the order of the first appellate authority deleting the addition made as income from undisclosed sources on account of difference between the cost of construction declared by the assessee and that estimated by the DVO - Departmental Valuation Officer (in short "the DVO") estimated the cost of construction at Rs. 8,89,540. The assessee also got the services of a registered valuer who estimated the cost at Rs.4,56,900 but the Assessing Officer adopted the valuation made by the DVO - Revenue submitted that even incomplete construction had the valuation and, therefore, the Tribunal was not justified in holding that in case of incomplete construction, the reference to the DVO was premature – Held that:- According to sub-section (3), the Assessing Officer on receipt of report from the Valuation Officer may take the same into consideration while making assessment or reassessment after providing an opportunity of being heard to the assessee. However, a proviso has been added, according to which this section shall not apply in respect of an assessment made on or before September 30, 2004, where such assessment has become final and conclusive on or before that date except in cases where a reassessment is required to be made in accordance with the provisions of section 153A. Section 142A of the Act is not attracted to the facts of the present addition sought to be made on the basis of report of the DVO cannot legally be done. decision against the Revenue and in favour of the assessee.
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