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2019 (5) TMI 1153 - AT - Income TaxUnexplained investment u/s. 69 - valuation of work-in-progress by the Assistant Commissioner of Commercial Taxes (ACCT) at the time of inspection in the business premises of the assessee - ACCT estimated the valuation of WIP without mentioning the quantity or rate of the individual item. It was a rough estimate - AO arrived at the difference between the valuation of WIP done by the ACCT and what was accounted in the books of accounts - HELD THAT:- To estimate this difference, first of all the AO has to reject the books of account of the assessee. Without rejecting the books of account, it is not proper to make addition towards unexplained investment u/s. 69 . ACCT has not at all pointed out the method of valuation of work-in-progress. Without determining the method of valuation of work-in-progress, it is not possible to sustain the addition. AO has to reject the books of account of the assessee and thereafter, he has to estimate the unexplained investment in work-in-progress in the relevant assessment year by following the market price or cost which was lower which the AO has failed to do so. Being so, we are inclined to delete the addition made u/s. 69 - Decided in favour of assessee.
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