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2015 (9) TMI 330 - HC - Income TaxUndisclosed investment - Addition of difference in the cost of construction of the factory building - non rejection of books of accounts - Held that:- No question of law arises. The Assessing Officer proceeded to examine the report of valuer supplied by the assessee itself. This was not a case where the Assessing Officer was relying on DVO’s estimation of the cost of the building before the Assessing Officer. The assessee never took the stand before the Assessing Officer that the report may have been inflated since it was prepared primarily for the purpose of seeking bank loan. The assessee also did not raise any contention about the report being inaccurate since the same took into account the entire valuation of the brick kiln also. In fact, as already noted, the contentions of the assessee before the Assessing Officer was that the valuation was erroneous. He raised several grounds in support thereof. He contended that the construction was made through cost effective measures and the report, therefore, was not accurate. To our mind, such question cannot be examined as part of the requirement of substantial question of law. The valuer had also, as noted by the Assessing Officer, full material at his command. Taking into account the nature of construction and the manner in which the same was carried out, simply by suggesting that the valuer committed serious error in accepting the correct valuation of the construction was not sufficient. The contention that the Tribunal had not given sufficient reasons also did not appeal to us. The Tribunal has, as already noted, given its reasons for reinstating Assessing Officer’s orders. As rightly observed by the Tribunal from the facts, the Assessing Officer found that the valuation shown in the books for the cost of the building was much lower than the valuer’s report, and when the Assessing Officer accepted such valuation in preference to the valuation shown in the books by giving cogent reasons, obviously, he was rejecting the book entries made by the assessee for such purpose. - Decided against assessee.
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