TMI Blog2009 (8) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... DVO on which the Assessing Officer relied upon, there was nothing on record to suggest that there was any other evidence to disbelieve the expenditure shown by the assessee. In fact during the course of arguments, learned counsel for the asses see produced the assessment order which clearly demonstrates that the expenditure shown by the assessee from the time, when it was an on going project, was examined and accepted by the Assessing Officer. – Held that AO for the purpose of getting himself satisfied about the purported unexplained expenditure under section 69C powers under section 142A could not be invoked. - Held that tribunal was justified in deleting the additions made by by AO on basis of valuation report - 1411 of 2008 - - - Dated: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,440. The Assessing Officer referred the matter to the Departmental Valuation Officer (DVO) to determine the cost of construction whose report showed the cost at Rs. 19,99,559. On the basis of the DVO report, the said cost of construction was adopted. In these circumstances, the Assessing Officer made accepting the low cost of construction than what was shown by the assessee and making an addition of Rs. 19,69,881. 5. The Commissioner of Income-tax (Appeals) confirmed the action of the Assessing Officer. However, the Income-tax Appellate Tribunal reverse the aforesaid decision on the ground that it was not permissible for the Assessing Officer to refer the matter to the DVO for obtaining the cost of construction. The Tribunal held that e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purpose of making an assessment under the Act, where an estimate of the value of any investment referred to in section 69A or section 69B or the value of any bullion, jewellery or other valuable article referred to in section 69A or 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. Thus, the power available under section 142(1) is requiring the Valuation Officer to value any investment or bullion, jewellery or other valuable article referred to in section 69, 69A or 69B of the Act. These powers do not extend to estimate the amount of unexplained expenditure referred to in section 69C of the Act. Admittedly, in the present case the expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred to in section 69 or 69B or the value of any bullion, jewellety or other valuable article referred to in section. 69A or 69B is required. There is no mention about section 69C of the Act. As is clear from the above, section 69A deals with unexplained money. Section 69B likewise relates to the amount of investment, etc., not fully disclosed the books of account. On the other hand, the provision relates to unexplained expenditure in section 69C. 10. In the present case, the Assessing Officer had doubts about the expenditure incurred on the project. As pointed out above, the assessee had shown the expenditure on the Yusuf Sarai Project as Rs. 39,69,440. Since the Assessing Officer had doubted this expenditure, he referred the matter t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 69B has to be in the context of investments made in some property or any other type of investment and it could not be the business expenditure. The word "investment" contained in section 69B deals with investment in bullion, jewellery or other valuable article, etc. If the contention of learned counsel for the Revenue is accepted and the expression is given a wider meaning as sought F w be made out, the provisions of section 69C shall be rendered otiose. 15. The learned counsel for the Revenue, however, took another plea to buttress her submission. She submitted that having regard to the circum Stances under which section 142A was inserted by the Finance (No. 2) Act, 2004, it be deemed that the intention of the Legislature was to include ..... X X X X Extracts X X X X X X X X Extracts X X X X
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