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2022 (8) TMI 302 - AT - Income TaxValidity of reference of matter to DVO u/s 142A - additions made on the basis of the DVO report - Non rejection of books of accounts - HELD THAT:- As reference to the DVO was made by the A.O. much prior to 01.10.2014 and without rejecting the books of account of the assessee. Therefore, in view of the Co-ordinate Bench order in the case of M/s.Shetty Constructions [2020 (2) TMI 790 - ITAT BANGALORE] we hold that reference to the DVO in the present case is illegal, hence, additions based on the DVO report are deleted. Additional income declared in survey proceedings - MD disclosed additional income on account of difference in value between the books of account of the assessee and the actual cost - HELD THAT:- The addition based on the DVO’s report was deleted by us only on the preliminary objection, namely, that the books of account of the assessee was not rejected prior to the reference to the DVO. The rejection of the DVO’s report on preliminary objection does not mean the value found therein is totally incorrect. This fact is reinforced by the MD in the sworn statement recorded on two different dates (i.e., on the date of survey on 11.07.2013 and u/s 131(1) of the I.T.Act on 24.07.2013), wherein he admitted that there may be some difference in the expenditure incurred in the building with the cost recorded in the books of account and also readily agreed to offer additional income of Rs.50 lakh in the hands of the assessee-company. Therefore, based on the declaration of the MD on two different dates, we confirm the addition of Rs.50 lakh for this assessment year. Moreover, we find that inspite of the addition of Rs.50 lakh, there is no tax liability for the assessment year 2013-2014
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