2010 (3) TMI 1103 - AT - Income Tax

Summary

Issues Involved:
The judgment involves appeals by the Revenue and Cross Objections by the Assessee against a common order passed by the Learned CIT(Appeals)-III, Ahmedabad for Assessment Years 1997-98, 1998-99 & 1999-2000.

Assessment of Unexplained Investments:
The assessee-company constructed a factory, and the Assessing Officer made additions for unexplained investments based on reports by the DVO. The ITAT directed the Assessing Officer to reevaluate the valuation after allowing the assessee to produce evidence to rebut the DVO's report.

Valuation Discrepancies and Assessment:
The DVO and Registered Valuer provided differing valuations for the construction costs. The Assessing Officer made additions based on the DVO's revised report. The CIT(Appeals) adopted an average valuation rate, allowed deductions for self-purchases, and restricted the additions made by the Assessing Officer.

Appeals and Cross Objections:
The Revenue appealed the CIT(Appeals) decision, arguing for the acceptance of the DVO's valuation. The Assessee contended that since the disclosed costs were not rejected, the additions should be deleted. The ITAT upheld the CIT(Appeals) decision, considering the valuation reports and objections raised by the Assessee.

Conclusion:
The ITAT dismissed the appeals by the Revenue and cross objections by the Assessee, affirming the CIT(Appeals) decision on the valuation discrepancies and assessment of construction costs for the relevant assessment years.