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2017 (12) TMI 1389 - AT - Income TaxAddition in respect of cost of construction of the property/building u/s 69C - whether addition made u/s 69C towards cost of construction on the basis of DVO report is allowable as deduction u/s 37(1) as business expenditure? - Held that:- Assessing Authority could not have referred the matter to the DVO without books of accounts being rejected. In the instant appeal, we find from the perusal of the assessment order that the Assessing Authority has not given any finding in order to reject the books of accounts of the assessee. This fact has not been disputed at any stage during the course of proceedings before the lower authorities as well as before us. Therefore in the given facts and circumstances of the case, are of the view that the action of the Assessing Officer of making reference to the DVO is invalid as the books of accounts were not rejected by him. We, therefore, hereby delete the addition of ₹ 1,22,980/- for Assessment Year 1999- 2000 also and accordingly allow this ground of appeal of the assessee.
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