TMI Blog2004 (12) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... herein it has been held that reference made by Assessing Officer for determining the cost of construction was without jurisdiction as none of the provisions authorized the Assessing Officer to make such reference. Consequently, it was held that no addition could be made on the basis of such report. This contention of assessee's Counsel was seriously objected by the ld. DR by submitting that the judgment of Hon'ble Supreme Court has been nullified by the retrospective insertion of new section 142A w.e.f.15-11-1972. Hence, all references have become legal. In view of the same, it is contended that appeal of revenue cannot be dismissed on the legal contention raised by the ld. Counsel for assessee. 3. Faced with such situation, the ld. Counsel for assessee has contended that in view of the proviso to newly inserted section 142A, the objection of ld. DR is devoid of force. He drew our attention to coma after the figure '2004' and before the word 'and' to contend that it is disjunctive and therefore this proviso is applicable to those cases (i) where assessments were made on or before the 30th September, 2004; and (ii) where such assessment has become final conclusive on or before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or section 69B is required to be made, the Assessing Officer may require the Valuation Officer to make an estimate of such value and report the same to him. (2) The Valuation Officer to whom a reference is made under subsection (1) shall, for the purposes of dealing with such reference, have all the powers that he has under section 38A of the Wealth-tax Act, 1957 (27 of 1957). (3) on receipt of the report from the Valuation Officer, the Assessing Officer may, after giving the assessee an opportunity of being heard, take into account such report in making such assessment or reassessment: Provided that nothing contained in this section shall apply in respect of an assessment made on or before the 30th day of September, 2004, and where such assessment has become final and conclusive on or before that date, except in cases where a reassessment is required to be made in accordance with the provisions of section 153A." 6. The above section has been brought on the statute book retrospectively in order to nullify the effect of the judgment of Hon'ble Supreme Court in the case of Smt. Amiya Bala Paul wherein it has been held that none of the provisions of the Act conferred any powe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for assessee is on the use of coma after the figure 2004 and before the word 'and', in the said proviso. According to him, the use of coma is disjunctive and, therefore, not only the concluded assessments are excluded but also the assessments which are pending before the higher forum. Reliance has also been placed on certain judgments to support his contention. There is no dispute to the legal proposition canvassed by him that plain and natural meaning should be given to the language used by the Legislature but it is also the settled rule of interpretation that no construction can render the provisions of Statute as redundant. If literal construction results in absurdity, then, such construction must be avoided and the provisions should be constred in the manner which would advance the object for enacting such provision. Reference can be made to the judgment of Hon'ble Supreme Court in the case of CIT v. J.H. Gotla [1985] 156 ITR 323 wherein it has been held:- "If a strict and literal construction of the statute leads to an absurd result, i.e. a result not intended to be subserved by the object of the legislation, ascertained from the scheme of the legislation, then, if another ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 1993-94 22,82,087 1994-95 10,04,410 Not satisfied with such declaration, the Assessing Officer made reference to the Valuation Officer for determining the cost of construction, who determined the same, after applying CPWD rates of 1976 at Rs. 62,63,226. He also valued the extra fittings at Rs. 2,94,774. This total value was taken at Rs. 65,58,000. The Assessing Officer accepting the valuation report, bifurcated the cost of construction as under: Financial Year Investment 1992-93 14,25,136 1993-94 35,63,505 1994-95 15,69,359 In view of the same, the Assessing Officer made addition of Rs. 12,81,468 being the difference between declared value and value determined by Assessing Officer for the year under consideration on the basis of valuation report. 12. The matter was carried in appeal before CIT(A), who after examining the facts on record and after inspecting the building recorded the following findings: 1. That out of total built up area of 1404 sq. mtr., 333 sq. mtr. Constituted the RCC structure as against 111 sq. mtr. taken by the DVO. Hence, re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rstly, Shri H.C. Bhatia is not a new person but is a partner of the firm. Secondly, he has been regularly introducing money in his account. In the previous year he introduced Rs. 11 lakhs. In the present year he introduced Rs. 9.50 lakhs. Thirdly, all the money has been brought in either by cheque or DD. Fourthly, Mr. H.C. Bhatia has confirmed the transaction and has also informed that he is assessed to tax by the ITO, Ward 22(7), Mumbai. Fifthly, the Assessing Officer himself has accepted the credit introduced by Mr. H.C. Bhatia amounting to Rs. 6.5 lakhs. There is, therefore, not justified in not accepting the creditworthiness of Mr. H.C. Bhatia in respect of two amounts of Rs. 1.50 lakhs each. Further, during the course of appellate proceedings, the assessee produced some more evidence by way of a letter of Mr. Bhatia dated 21-2-1998 wherein he has confirmed once again that he has deposited Rs. 3 lakhs in his account by way of D.D. from Allahabad Bank and Canara Bank. It is, therefore, held that the assessee has fully proved the identity and creditworthiness of the partner who has introduced the amount. The addition is not warranted. It is deleted." Aggrieved by the same, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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