9911796707
TMI Blog2001 (9) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... e States of Tripura, the construction of which was started in the financial year 1987-88 and continued upto the financial year 1990-91. As per the accounts of the assessee the total investment in construction of building upto the asst. yr. 1991-92 was Rs. 26,50,190 which includes investment in the asst. yr. 1989-90 of Rs. 13,20,782 and in the asst. yr. 1991-92 of Rs. 3,60,679. The AO finding massive investment in construction referred the matter to the Departmental Valuation Officer for determining the cost of construction. As per the DVO's report the total investment of the assessee in the building upto the asst. yr. 1991-92 was Rs. 29,82,755 which, inter alia, includes Rs. 14,86,429 during the asst. yr. 1989-90 and Rs. 4,05,928 during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed a copy of the cost of construction report of the approved valuer and the cost of construction report as per Tripura PWD Schedule by the civil engineer and pointed out that the cost determined in these two reports compares favourably with the investment shown by the assessee. He argued that these reports were duly filed before the AO in the course of assessment proceedings who without pointing out any defect in the aforesaid reports brushed it aside after considering the investment made by the assessee and in a mechanical manner relied solely upon the report of the DVO. He further submitted that the DVO's report suffers from some defects like it did not consider the materials received at subsidised rates by the assessee, allowed only 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to verify the books of account and vouchers maintained by the assessee in support of the cost of construction shown by him and point out specific defects therein; (ii) upon rejection of the books or upon pointing out defect the AO would acquire the right to refer the matter to the valuation officer, if so required, and (iii) when the assessee produces register, valuer's report based on the State PWD rates it cannot be simply rejected without giving cogent reasons." 5. In the instant case, the AO referred the matter to the valuation officer without examining the books and vouchers maintained by the assessees. Further, the registered valuer's report and the report of the chief engineer based on State PWD rate was rejected by the AO with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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