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TMI Blog2015 (12) TMI 1454X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 39,65,300/- u/s 69B of the Act on account of unexplained investment in the property owned by the Assessee at 120/865 Ranjeet Nagar, Kanpur, which was properly made on the basis of DVO's report after giving the assessee sufficient opportunity of being heard. 2. That the Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 39,65,300/- u/s 69B of the Act by relying upon the decision of Hon'bie Supreme Court in the case of Sargam Cinema {328 ITR 513(SC)} ignoring the fact that the assessee does not maintain any books of account in respect of her sources of income and therefore the ratio of decision of Sargam Cinema {328 ITR 513(SC)} is not applicable to the facts of the case. 3. That the order of the Ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ACIT's letter is mentioned. The ld. counsel for the assessee has further invited our attention to the order passed under section 263 of the Act by the ld. Commissioner of Income-tax against the original assessment order, in which the ld. Commissioner of Incometax himself has mentioned that the issue of legality of reference under section 142A of the Act and infirmities in the valuation report is to be decided by the Assessing Officer while giving effect to this order. The ld. counsel for the assessee has further contended that in the light of these facts, the reference was made to the DVO without rejecting the books of account, therefore, the reference itself is bad and the report submitted consequent thereto is not sustainable in the ey ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken into account the judgment of Hon'ble Andhra Pradesh High Court in the case of Bharat Cement Corporation Pvt. Ltd. vs. CIT & Others (supra), in which a contrary view was expressed and their Lordships have consistently held the judgment in the case of Sargam Cinema vs. CIT (supra) is to be followed and without rejecting the books of account, the reference is not valid. 6. Having carefully examined the orders of the lower authorities in the light of the rival submissions, we find that during the course of original assessment proceedings, the Assessing Officer has made a reference to the DVO undisputedly without rejecting the books of account and before receipt of the valuation report, the Assessing Officer has completed the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic Educational Society (supra) has categorically held that reference to the Valuation Officer under section 142A(1) of the Act cannot be made without rejecting the books of account. 8. Recently the Hon'ble Andhra Pradesh High Court has taken a contrary view and has held that rejection of the books of account of the assessee regarding valuation is not a precondition for enquiry into the same under section 142A of the Act. A heavy reliance was placed upon this judgment by the Revenue, but contrary judgments were passed by the Hon'ble Punjab & Haryana High Court and Hon'ble Gujarat High Court in the cases of CIT vs. Rajesh Mahajan (supra) and CIT vs. Vijaykumar D Gupta (supra) respectively. While passing the judgment in these case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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