TMI Blog2003 (2) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... the cost of construction on the basis of valuation report of AVO. The learned Authorised Representative of assessee has contended that the assessee has maintained regular books of accounts in respect of the cost of construction of clinic building for the assessment year under appeal and the said accounts are in details and are duly supported by vouchers. He has contended that he had produced the aforesaid accounts together with the copies of the vouchers before AO also. He has contended that the AO has not considered the accounts and supportive vouchers furnished by assessee and has neither rejected the accounts nor has he found any defects in the accounts of assessee but has straightaway made reference to AVO for estimating the valuation/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied for the reason that the assessee had maintained regular and detailed accounts which were duly supported by vouchers. He has contended that the Hon ble Jurisdictional High Court has laid down the legal position, in the above mentioned cases, to the effect that when the assessee has maintained regular accounts of the cost of construction, which are supported by vouchers/evidence, and the AO does not find defect therein, the action of the AO in making reference to DVO/AVO for valuation of construction/building is not justified, nor is the action of AO in making addition on the basis of such estimate made in the valuation report of DVO/AVO. He has contended that it has also been held by the Hon ble Jurisdictional High Court as also by vario ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be followed. It has also been held that the valuation report can be taken into consideration only when the books of account are not reliable or are not supported by vouchers or the ITO is of the opinion that reliance cannot be placed thereon. It has also been observed that there may be a marginal difference in the actual investment and the report of Valuation Officer for a number of reasons including the fact that the valuation report is prepared on the basis of CPWD rates. The Hon ble High Court accordingly held that the Tribunal was not justified in deleting the addition. Similarly, in the case of Hotel Joshi the Hon ble High Court has held that when the cost of construction shown by assessee in the books of accounts are maintained regula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he detailed accounts of cost of construction of the clinic building maintained by the assessee in his books of accounts completely/properly, nor pointed out any defects therein nor any specific defect therein, nor has he expressly rejected the same by giving reasons for the purpose, but has simply made a passing reference to the assessee s reply-letters dt. 21st Aug., 1990 and 5th Oct., 1990. It is also revealed that even in the cost of construction estimated by registered valuer, whose valuation report has been furnished by assessee, and the cost estimated by AVO in his valuation report, there is a vast difference as has also been mentioned in the written statement furnished by assessee. Be that as it may, considering the rival contentions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as also the issue as to whether the AO was justified in making reference to AVO for valuation of cost of construction and in not accepting the cost of construction shown by the assessee in his accounts when the assessee had maintained detailed accounts in his regular books of accounts maintained for the purpose which were in details supported by vouchers. The said contention is specifically contained in para 10 on internal p. 2 in assessee s reply/letter dt. 5th Oct., 1990, furnished to AO, and is also contained in ground Nos. 1 to 3 raised before the learned CIT(A). Similar contention/plea has also been raised by assessee-appellant in the grounds of appeal raised before the Tribunal. As such, the assessee-appellant having agitated the acti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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