TMI Blog1994 (11) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... from running a hotel called Ashoka Hotel therein. According to the assessee after demolition of the old structure the constuction and renovation of the building in question was started in March 1986 and completed in all respects in the month of July 1987. He had allegedly maintained a complete record, on day-to-day basis, of all the expenditure incurred on the demolition, construction and renovation of the hotel building. On the basis of such record the position of expenditure incurred came to the following : Old cost up to 31-3-1986 Rs. 47,000.00 Exp. during 1986-87 Rs. 1,83,000.00 Exp. during 1987-88 Rs. 25,000.00 -------------------- Rs. 2,55 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and held that rejection by the A.0. of the building constuction account in the books of the assessee without pointing out any specific defect was unjustified and that since the estimate made by the Registered Valuer was based on the standing order of the Public Works Department (PWD) of the State of Rajasthan, the same was acceptable in preference to that made by the DVO on the basis of Central Public Works Department (CPWD) rates. The learned CIT (A), therefore, deleted the addition in question giving thereby rise to the present appeal before the Tribunal. 6. The learned Departmental Representative urged that since the estimation made by the AO of the cost of construction was based on the report of an expert of the subject, the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings. The said section says that entries in the books of account, regularly kept in the course of business, are relevant when they refer to a matter into which the Court has to enquire but such statements shall not alone be sufficient evidence to charge any person with liability. The necessary requirements for availing the benefit of this provision are that the entries should have been made in the books of account, that such books of account have been regularly kept in the regular course of business and that such entries refer to a matter being enquired Into by the Court. But such entries would not by themselves fasten a liability on the other. The statements made through such entries are in the nature of admission of certain facts by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of his business. On scrutiny the AO might have found some defect in the account relating to sales but no specific defects in the account maintained for expenditure incurred on the construction/renovation of hotel building was pointed out by him. Under such circumstances the AO was certainly not justified in rejecting such specific record of expenditure and relying upon estimation of such cost by an expert person, particularly when the account of construction submitted by the assessee got good corroboration from the opinion of other similar expert. In our opinion the issue in the point has rightly been decided by the learned CIT(A) and, therefore, ground No. 1 is dismissed. 11. Now coming to the subject-matter of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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