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2015 (1) TMI 195 - HC - Income TaxInterpretation of section 69C - Whether the Tribunal is right in interpreting Section 69C and cognate provisions for upholding the addition towards cost of construction on the basis of report of the DVO - Held that:- Following the decision in COMMISSIONER OF INCOME TAX, RAJKOTI Versus KAMDAR AND ASSOCIATES [2015 (1) TMI 234 - GUJARAT HIGH COURT] wherein the decision in Commissioner of Income Tax-II Versus Vijaykumar D. Gupta [2014 (4) TMI 860 - GUJARAT HIGH COURT] followed and held that the AO could not have made reference to the DVO without reference to the books of accounts and such reliance on the DVO's books of accounts was not justified - there was no material, what to say an incriminating material, in the possession of the Revenue Department - while making the reference to the Valuation Officer, the AO has not recorded any defect in the books of account nor has he rejected the same - except for the difference in the estimated cost determined by the Valuation Officer and the actual cost as shown by the assessee, the AO has not brought any material on record to establish that the assessee had made any unaccounted investment in the construction of the building and that the books of account do not reflect the correct cost of construction – thus, the report made by the Valuation Officer pursuant to such an invalid reference could not have been made the basis for addition u/s 69 - Decided in favour of assessee.
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