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2019 (3) TMI 1037 - HC - Income TaxReference to the DVO - Proceedings u/s 153-C has been held without jurisdiction - whether reference to DVO in 153-C proceeding is valid - differential value of investment shown in the construction - HELD THAT:- A survey was conducted on 17.10.2006 at the Banarasi Misthan Group of cases and thereafter, proceedings u/s 153-C were initiated on 27.09.2007, which was challenged by the respondent – assessee at the appellate stage and the CIT (Appeals), by the order dated 19.01.2010, has decided the appeal in its favour, against which, the Revenue filed an appeal before the Tribunal, which was decided in favour of the respondent – assessee. Against the order of the Tribunal, the Revenue filed Income Tax Appeal 2014 (5) TMI 158 - ALLAHABAD HIGH COURTbefore this Court and the same was dismissed by this Court. The very basis for referring the matter to Departmental Valuation Officer in the disputed years, where the proceeding has been initiated under section 153-C has been held without jurisdiction. Once the very basis for referring the matter to the Departmental Valuation Officer has vanished, the entire proceedings cannot be held to be justified. Moreover, at the time of referring the matter to the Departmental Valuation Officer, neither returns were filed, nor the books of account maintained by the respondent – assessee were rejected, nor any assessment or reassessment proceedings were pending. In view of the judgement of Sargam Cinema [2009 (10) TMI 569 - SUPREME COURT OF INDIA] and M/S. GOPI APARTMENT [2014 (5) TMI 158 - ALLAHABAD HIGH COURT] the basis for referring the matter to Departmental Valuation Officer itself vitiates and is liable to be quashed. - Decided in favour of assessee.
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