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2017 (1) TMI 628 - HC - Income TaxValidity of notice u/s 147 - not giving cognizance to the valuation reports of DVOs as no proceedings was pending for A/Y-1995-96 - Held that:- Aforesaid question has already been considered by this Court in M/s Tikaula Sugar Mills Limited Vs. C.I.T., Muzaffar Nagar [2012 (10) TMI 619 - ALLAHABAD HIGH COURT ] the reference to DVO under Section 142-A is not to make a fishing and roving enquiry into the expenditure in constructions. The AO is not authorised to call for the report of DVO unless he forms an opinion that he cannot rely on the assessee's accounts and rejects the accounts books. The incomplete report of the DVO on the basis of which the assessment was reopened and for which the reasons were recorded on could not be accepted as the material on the basis of which the AO could have formed belief that the assessee-company had not truly disclosed the expenditure of earthwork. The DVO had only raised doubts on the methodology adopted by the assessee for valuation. The AO acted casually in discharging his functions. - Decided in favour of assessee
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