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TMI Blog2009 (6) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... aring an income of Rs. 1,87,648 on 6th Dec., 2005. This included income from capital gains for Rs. 96,663 and income from house property at Rs. 1,26,700. A survey under s. 133A of IT Act was conducted at business premises of the assessee on 22nd Feb., 2005. The books of account were found incomplete. Physical stock taking revealed shortage of stock when compared with the stock worked out on the basis of a trading account prepared on the date of survey. The assessee admitted of making unaccounted sales and surrendered income on that account of Rs. 16,550. This income however, was not included in the returned income. The turnover of the assessee being below Rs. 40 lakhs, the case was taken to be covered by the provisions of s. 44AF of IT Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al in view of decision in the case of CIT vs. Hotel Joshi (1999) 157 CTR (Raj) 369 : (2000) 242 ITR 478 (Raj). The learned CIT(A) found that the AO had not asked for any books of account or construction account before referring the case to the DVO. Since the AO made reference to DVO without rejecting the books of account, he found no justification in making the reference and consequent addition therefore, stood deleted. He also considered the addition on merit and held that the addition that can be sustained on merit works out to Rs. 5,87,844 as against Rs. 14,26,415 made by the assessing authority. 5. The learned Departmental Representative while assailing the order of learned CIT(A) contends that survey action revealed that books of acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was selected for compulsory scrutiny for making regular assessment due to survey under s. 133A on 22nd Feb., 2005 at the premises of the assessee. An order sheet entry to this effect has been made on 12th April, 2006 by the assessing authority. On the same very day, a notice under s. 143(2) of the IT Act was issued fixing the case for hearing on 15th May, 2006. Thereafter the assessing authority on 6th June, 2006 made a reference to the valuation cell requiring elucidation of cost of construction of "Shreeji Marriage Garden, Partapgarh" by issuing commission under s. 131(1)(d) r/w s. 142A of IT Act. The said reference is found made in the backdrop of the fact that at the time of survey on 22nd Feb., 2005, the books of account of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment 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 s. 153A. Explanation-In this section, 'Valuation Officer' has the same meaning as in cl. (r) of s. 2 of the WT Act, 1957 (27 of 1957)." 8. The overall perusal of facts and the amended provisions brought into statute by inserting s. 142A of IT Act reveal that the assessing authority acted within his competence and made a valid reference within the scope of powers vested in him. The criteria as laid by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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