TMI Blog1992 (3) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... 974. During the relevant assessment year 1971-72, for which the previous year ended on March 31, 1971, the assessee made certain additions and alterations to its Minerva Cinema building and the total expenditure incurred according to the books of account maintained by the assessee was Rs. 3,83,320. The Income-tax Officer, 'C' Ward, jodhpur, referred the matter to the Valuation Cell and the Valuation Officer has estimated the cost of additions and alterations at Rs. 4,48,400. The assessment was reopened by issuing notice under section 148 and the assessee was confronted with a copy of the valuation report. According to the Income-tax Officer, the assessee's version that its books of account are true and correct has to stand the test of valua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ell was not justified. The expenditure recorded in the books of account should have been accepted. We may add that, where the books of account are properly maintained and the expenditure is recorded therein with full details and is supported by vouchers, the total expenditure so reflected in the books has to be accepted in preference to any estimate even if it is by an expert. We direct that the addition be deleted." From a perusal of the order of the Tribunal, it would be evident that even the reference to the valuation cell by the Income-tax Officer was held not justified on the ground that the books of account are maintained and the expenditure is recorded therein with full details and is supported by vouchers. The Tribunal has proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xamined the matter in detail with regard to the books of account in order to say that the books are not reliable. Simply because the valuation report is of a higher amount, the books cannot be said to be unreliable unless, by a deeper probe, any defect is found in the maintenance of the books of account. The Tribunal was, therefore, justified in deleting the addition of Rs. 55,780. Consequently, the reference is answered in favour of the assessee and against the Revenue and it is held that in the absence of any finding by the Income-tax Officer that the books of account are not properly maintained and that the expenditure is not fully recorded or is not supported by vouchers or the books of account are defective, the Incometax Appellate T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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