TMI Blog2009 (6) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... ER-B.R. JAIN, A.M.: This appeal by the Revenue against the order dt. 17th March, 2008 of learned CIT(A), Udaipur raises the solitary ground as under: "1. On the facts and in the present circumstances of the case, the learned CIT(A) has erred in deleting the addition of Rs. 14,26,415 made under s. 69 of the Act on the basis of valuation report of the DVO." 2. Briefly the facts are that the assessee is a retail trader in cloth and filed return declaring 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 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom his books of account. The objections of the assessee and all such documents were forwarded for examination of the DVO who after hearing the assessee, rejected the same and forwarded his report item-wise. Considering the entire material, the AO made an addition of Rs. 14,26,415 as unaccounted investment in construction by his order dt. 18th Dec., 2007. 4. Before the learned CIT(A), the assessee challenged that the reference made to DVO itself is illegal 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 withou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valuer's report during the course of assessment proceedings when he was confronted with DVO's report. Since the reference made does not fulfil the requirement as per criterion laid by the Hon'ble High Court in Hotel Joshi, the decision reached by the learned CIT(A) calls for no interference. 7. We have heard the parties and have carefully perused the material on record in terms of sub-r. (6) of the ITAT Rules, 1963 and the precedents cited at Bar. The case 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. 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port the same to him. (2) The Valuation Officer to whom a reference is made under sub-s. (1) shall, for the purposes of dealing with IT Act, 1961 (hereinafter referred to as 'the Act' for short) such reference, have all the powers that he has under s. 38A of the WT Act, 1957 (27 of 1957). (3) On receipt of the report from the Valuation Officer, the AO 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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