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2017 (6) TMI 1081 - AT - Income TaxAddition on the basis of report of Valuation Officer - Held that:- No reason for sustaining any addition in the year under consideration as the DVO’s report is dated July, 2013 and the DVO has recorded that the assessee has declared investment of ₹ 4.92 lac against his estimate of cost of construction at ₹ 5.15 lac for the year, which is less than 10%. The Hon'ble J & K High Court in Honest Group of Hotel (P) Ltd. vs. CIT (2001 (11) TMI 1016 - HIGH COURT OF JAMMU & KASHMIR) has held that difference upto 10% in the DVO’s report and the amount shown by the assessee is liable to be ignored. In the facts of the instant case, it is seen that the overall difference between the investment declared by the assessee at ₹ 3.65 crore and as estimated by the DVO at ₹ 3.97 crore is less than 10% of the DVO’s estimate. As such, no addition is called for. Thus order for the deletion of addition. - Decided in favour of assessee. Addition being investment made in some agricultural land - Held that:- AO has simply rejected the assessee’s claim of having earned agricultural income of ₹ 8.18 lac, which was duly backed by evidence in the form of Forms No. J. Rejecting the veracity of Forms No. J, the Assessing Officer proceeded to estimate agricultural income in a whimsical manner at ₹ 3,29,250/-. No effort whatsoever was made to examine the commission agents, who issued Form Nos. J. Under such circumstances, the view point canvassed by the Assessing Officer in not admitting the agricultural income at the stated level, duly backed by uncontroverted Forms No. J, cannot be countenanced. If the Assessing Officer was not satisfied with the veracity of Forms No. J, it was for him to make investigation and prove that such forms were fictitious or not genuinely obtained by the assessee. In the absence of any exercise having been done, cannot uphold the sustenance of addition made by the ld. CIT(A) on such unfounded basis.- Decided in favour of assessee.
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