TMI Blog2015 (6) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... s position is not disputed even by the Learned Departmental Representative at the time of hearing before us. Thus the books of account disclosing the cost of construction of college building, were never rejected by the Assessing Officer, we find ourselves in agreement with the learned CIT(A) that the reference made by the Assessing Officer to the DVO for estimating the cost of construction itself was not valid and the additions made on the basis of the said report for both the years under consideration are not sustainable - Decided in favour of assesse. - ITA No.1617/Hyd/14, ITA No.1618/Hyd/14 - - - Dated:- 11-3-2015 - Shri P.M.Jagtap And Smt.Asha Vijayaraghavan JJ. For the Appellant : Shri Rajat Mitra DR Fot the Respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cerla was done by the assessee. In the returns of income filed for assessment years 2007-08 to 2012-13, the cost of said construction was disclosed by the assessee as under- Assessment Year Cost of Construction Rs. 2008-09 21,21,248 2008-09 13,15,551 2009-10 22,78,772 2010-11 20,01,650 2011-12 . 2012-13 34,00,000 Total 1,11,17,221 During the course of assessment proceedings, a valuation report of the registered valuer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19.08% 13,74.290 2008-09 13,15,551 11.83% 8,52,089 2009-10 22,78,772 20.49% 14,75,850 2010-11 20,01,650 18.00% 12,96,500 2012-13 34,00,000 30.58% 22,04,050 Total 1,11,17,221 72,02,779 The additions of ₹ 13,74,290 and ₹ 12,95,500 were thus made to the total income of the assessee for assessment years 2007-08 and 2010-11 respectively on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y defects in the books or in the investment account referred the matter to the Valuation Cell for estimating the construction value of the property. (iii) The assessee made aggregate investment of ₹ 1,11,17,221 during the A.Ys 2007-08 to 2012-13 and the Valuation Officer estimated the same at ₹ 1,83,20,000 and the AO added the difference of ₹ 72,02,779 spreading over A.Ys 2007-08 to A.Y. 2007-08 to A.Y. 2012-13, solely relying upon the report of the Departmental Valuer, in the absence of any corroborative material found/brought on record. (iv) I agree with the submissions of the appellant mentioned in Para.5.2 (sub-paras 3 4) of this order regarding its objections in respect of valuation of the property by the Valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant, the A.O. had not brought out any adverse material found during the course of survey nor pointed out any discrepancies in the books of the account. 5.5 In view of my observations in Para.SA, I hold that the above case-laws are squarely applicable to the facts of the appellant and the A.O. was not justified in referring the matter to valuation officer and adopting the same, without rejecting books of account or pointing out any discrepancies in the books of account. Hence, I delete the addition of ₹ 13,74,290 pertaining to the asst. Year under consideration. Aggrieved by the orders of the disallowed CIT(A), Revenue has preferred these appeals before the Tribunal. 5. We have heard the arguments of both the sides an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances of that case, it was held by the coordinate bench of this Tribunal that the valuation report could be taken into consideration only when the books of account were found to be not reliable. In the case of Sargam Cinema (supra), the Tribunal had come to the conclusion that the assessing authority could not refer the matter of valuation to the DVO, without the books of account being rejected. Keeping in view a categorical finding recorded by the Tribunal that the books were never rejected by the Assessing Officer, the Hon'ble Supreme Court held that reliance could not be placed on the report of the DVO for alleging any unexplained investment in the hands of the assessee. Keeping in view the ratio laid down in these judicial prono ..... X X X X Extracts X X X X X X X X Extracts X X X X
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