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TMI Blog2012 (8) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... cy - as in support of the indirect expenditure incurred i.e. loan taken from the bank on the said property has also been furnished - thus in the absence of any discrepancy noted by the Revenue Department it was not justifiable on the part of the Revenue authorities to reject the valuation of the property as submitted by the assessee - Assessing Officer referred matter to the Departmental Valuation Officer without first rejecting the books of account - in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer primarily on the ground that the Assessing Officer has followed the valuation as finalized by the DVO and the assessee has not pointed out any lacuna in the said valuation report, hence the addition was confirmed. 4. From the side of the appellant, ld.AR Mr.P.M.Mehta appeared and informed that the assessee had taken a loan of Rs.51,81,800/- from ICICI Bank. The assessee had declared the investment in the house property including furniture at Rs.41,20,870-/- in the books of account. Thus, the ld.AR has argued that bank generally sanctions a loan only on the basis of the actual value of the property. The bank has assessed the value as per the actual position and thereupon granted the loan which itself proves that the va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He has pleaded that once a valuation has been done by the DVO, then the said report should be followed by the Assessing Officer since such a report is prepared by a technical person. He has also pleaded that on one hand, the Revenue has placed reliance of a technical report, however, on the other hand, the assessee has not furnished any report of a specialized person to confirm the valuation of the construction. 6. We have heard both the sides at some length and have perused the orders of the authorities below in the light of the compilation filed. The property in question is situated at Kamal Park Society, Varachha, Kapodara Road, Near Sakar Society, Surat. As per the statement of facts, the assessee had incurred expenditure towards reno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of these facts, we are of the view that in the absence of any discrepancy noted by the Revenue Department in respect of the details of the expenditure submitted by the assessee, it was not justifiable on the part of the Revenue authorities to reject the valuation of the property as submitted by the assessee. Rather, in the case of CIT vs. Lucknow Public Educational Society 339 ITR 588 (All.), the Hon'ble Allahabad High Court has expressed an opinion that the Assessing Officer referred matter to the Departmental Valuation Officer without first rejecting the books of account. While pronouncing the said judgement, the Hon'ble High Court has applied the ratio laid down by the Hon'ble Supreme Court in the case of Sargam Cinema vs. CIT 328 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X
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