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2014 (7) TMI 431 - HC - Income TaxReference made to DVO - Deemed income u/s 69B of the Act – Unexplained investment and levy of penalty u/s 271(1)(c) of the Act – Held that:- CIT (Appeals) had correctly appreciated the facts and the applicable law - the only reason given by the assessee was that he was suffering from high fever and had signed the papers without properly applying his mind or appreciating the contents or issue – the letter was disbelieved by the AO as well as by the CIT(A) - the value assessed by the DVO pointed out towards the truthfulness of the disclosure made - there was no infirmity in the approach of the CIT (A) - The difference in the disclosed consideration and the value as estimated by the DVO is so large that even if the valuation was not considered accurate, it nonetheless indicated that the recorded consideration was understated and the DVO’s report could be relied upon to corroborate the statement of the assessee, that he had paid an additional sum of ₹ 55 lacs in cash. The statement had been made by the assessee and not by any third party - the statement made by the assessee had been held to be voluntary and without any undue influence, both by the AO and the CIT (A) – thus, the Tribunal erred in holding that the DVO’s report did not corroborate the statement made by the assessee before the Income Tax Authorities – The order of the CIT (A) made in penalty proceedings had given effect to the Tribunal’s order in the substantive proceedings - The rights and contentions of the parties in respect of the penalty shall be gone into independently in accordance with law by the CIT (A) - Decided in favour of Revenue.
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