Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 684 - ALLAHABAD HIGH COURTReference to the DVO before rejecting the books of accounts - The A.O. did not find any defect in the books of account and without rejecting the books of account he referred the matter and got the valuation from the DVO – Held that:- A.O. put the cart before the horse – As per Sargam Cinema [2009 (10) TMI 569 - Supreme Court of India], A.O. could not have referred the matter to Departmental Valuation Officer without rejecting books of account. He had to first find out whether the books of account were maintained properly, give opportunity to the assessee to explain any deficiency or discrepancy in books of account and then only after he had rejected the books of account, he could have referred the matter to DVO for valuation for the purpose of assessment of income – In the present case, reference to valuation could not be made only to verify the investment disclosed in the construction of the building in books of account – Decided against the Revenue.
|