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TMI Blog2012 (7) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... by the learned CIT(A)is deleted - in favour of assessee. - ITA No.1421/Ahd/2009 - - - Dated:- 29-6-2012 - S/SHRI D. K. TYAGI, AND T. R. MEENA, JJ. Appellant by Shri S.N. Soparkar with Mrs. Urvashi Sodhan, ARs Respondent by Dr. Jayant Jhaveri, Sr. DR. O R D E R PER T. R. MEENA: This is assessee s appeal for assessment year 2004-05 arising out of the order of the learned CIT(A)-I, Baroda in appeal No. CAB-I/132/08-09 dated 27-03-2009. 2. The assessee in ground No.1 and 2 of the appeal challenged the validity of reopening u/s 147 of the IT Act on the ground that it was reopened on the basis of reference to the DVO u/s 148 of the Act, but grounds No.1 and 2 of the appeal have not been pressed by the assessee, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the assessee on account of unexplained investment in the property. 4. Being aggrieved by the order the AO, assessee filed first appeal before the learned CIT(A)-I, Baroda who had given detailed reasoning on page 4, 5, 6 and 7 of his order and the learned CIT(A) held that reference made to the DVO was as per law but the AO should have also considered the other aspects of the case which was raised by the assessee in the form of objections at the time of assessment proceedings. He further observed that the learned AO relied on the DVO s report and the assessee relied on Registered Valuer s Report. There is wide variation between both the values determined by the experts. The DVO has considered evidences of comparable cases situate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.63,40,500/-. This is based on the Ready Reckoner. This is evident on the basis of the stamped document whereby such purchase is made. The said valuation is done by the Stamp Authority under section 33 of the Stamp Act as adjudication. This document was also made available to the valuation officer, but he has not referred this value and has not said as to why this accepted method is not acceptable to him. The LAO and the Deptt. Valuer failed to appreciate that the land on which the building is constructed is Collector's Land and the permission is to be obtained before any transfer. Thus it is not a freehold land and the 'building1 only belongs to the Society. For making addition, Department cannot place sole reliance on DVO report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffers from the same defects as that of the ITO" and that the view expressed by the learned JM placing reliance upon another order of the Tribunal taking a similar view is more acceptable, I, therefore, agree with the view expressed by the learned JM. (iii) ITO Vs. Pitamber Industries (P) Ltd. (1992) 42 ITD 373 (Del) When the assessee maintained books of account and recorded investment in those books of it becomes compulsory as per the legislative mandate that the ITO should point out defects in the maintenance of those books of account. It is not open to him to ignore the evidence provided by these entries in the books of account and go only by the valuation given by the Valuation Officer. When the ITO proposes to go by the Valuation Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stituting figures, even if they were alleged to be figures of undisclosed investment based on report of an expert and, thus, aforesaid amount of was not assessable in hands of assessee Held, yes. (v) ITO Vs Dreamland Enterprises (1995) 81 Taxman 143(Ahd)(Mag) Sec. 69 of the IT Act, 1961 Unexplained investment Asst. yr. 1987-88 Whether, when of construction declared by assessee was supported by regular books of account and correctness of which was not disputed by AO or Departmental Valuation Officer bringing any specific material on record, CIT(A) was fully justified in holding that could be validly made on account of any understatement of cost of construction merely on the basis of difference between actual cost disclosed by assessee, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as failed to prove that the valuation report of the Approved valuer and the Stamp Duty valuation are not correct. The addition needs to be deleted. Another side, the learned DR for the revenue vehemently argued to confirm the order of the learned CIT(A) and that no further relief should be given to the assessee. 6 We have perused the orders of the authorities below, written submission and arguments from both the sides. The assessee had purchased the flat at Rs.62 lacs but Stamp Valuation Authority had valued the said flat for stamp duty purposes at Rs.63,40,500/-. The learned AO has not brought on record any other evidence except the report of the DVO that the assessee has paid more than agreed consideration. The assessee filed compara ..... X X X X Extracts X X X X X X X X Extracts X X X X
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