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2015 (1) TMI 234 - HC - Income TaxDifference in cost of construction - Whether the Tribunal was right in deleting the addition made on account of difference in the cost of construction as disclosed by the respondent as against valued by the DVO – Held that:- Following the decision in Commissioner of Income Tax-II Versus Vijaykumar D. Gupta [2014 (4) TMI 860 - GUJARAT HIGH COURT] - 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 against revenue.
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