Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 1666 - AT - Income TaxRevision u/s 263 - valuation and investment made in the fixed assets - as per Commissioner order passed by the AO is erroneous and prejudicial to the interest of the revenue as the AO failed to conduct the proper enquiry on the valuation of the cost of construction and for not referring the matter to the Departmental Valuation Officer - HELD THAT:- In the case in hand, admittedly, it is not a complete lack of enquiry on the part of the AO rather the AO has conducted a detailed enquiry on this issue and called for all the relevant records from the bank for the purpose of examining the cost of construction of the hotel building. It may be a case of inadequate enquiry so far as not referring the matter to the DVO. However, it is not mandatory for the AO to refer the valuation to the DVO once the AO was satisfied with the cost of construction and cost of fixed assets as recorded in the books of account. Further, even if the Pr. Commissioner found that the decision of the AO accepting the cost of construction/cost of fixed assets is contrary to the facts or otherwise not permissible as per the provisions of the Act, then the order of the AO could have been reversed by giving a concluding finding on the issue. Pr. Commissioner has set aside the impugned order only for the purpose of referring the same to the DVO. Therefore, the Pr. CIT was also not sure about the correctness of the cost of construction or cost of fixed assets either shown in the project report or recorded in the books of account. Accordingly, in the facts and circumstances of the case when it is not a case of lack of enquiry but the AO has taken a view by accepting the cost of fixed assets as recorded in the books of account which were also supported by the valuation report, then the order of the AO cannot be held to be erroneous on the ground of lack of enquiry. - Decided in favour of assessee.
|