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TMI Blog2012 (10) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... de by the Assessing Officer on account of variation in valuation shown by the assessee and determined by DVO." 3. Brief facts giving rise to this appeal are that the assessee's case was reopened u/s 147 and 148 of the Act and in response to notice u/s 148 of the Act, the assessee submitted that he has filed his regular income tax return on 28.10.2006 and the same may be treated as return filed in response to notice u/s 148 of the Act. The Assessing Officer noted that the assessee has purchased property no.67/4, Madras House, Darya Ganj, New Delhi. In pursuance of notice u/s 148 of the Act, the assessee submitted that the assessee sold plot no.303, Patparganj on 01.01.2005 for a consideration of Rs.8,50,000 and there was no capital gain on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- and the AO had asked for the details of the source of the investments and had finally referred the property to the DVO for valuation on the ground that there was under-statement of investment in the property. The DVO had valued the property at Rs 25,89,956/- and accordingly, the AO has made the addition of Rs. 15,89,956/- (Rs 25,89,956/- (-) Rs 10,00,000/-) as unexplained investments. 2. The assessee is in appeal against the order of the Assessing Officer and it is submitted that the Assessing Officer is not justified to make the addition as the assessee had purchased the property for Rs. 10,00,000/- and reflected the same in the sale deed also. It is submitted that the Assessing Officer has made the addition merely on the basis of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Although, I have confirmed the action of the AO in reopening the assessment but I do not find any substantial material or any corroborative evidence to show that the assessee has made any unexplained investment in the purchase of the property as alleged and claimed by the AO and as such it is difficult to sustain this addition. 6.5. After considering all the facts and circumstances of the case, I am of the view that the AO has not made out a clear case of any unexplained investment against the assessee and as such the addition is made by the AO is apparently unsustainable and accordingly, the same is deleted." 5. We have heard rival arguments of both the parties and carefully considered the submissions and material submitted befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... afford an opportunity to the assessee to confront the report of the DVO and he made the addition violating all the accepted principles of natural justice. The AR submitted that the wrong action of the Assessing Officer was rightly corrected by the Commissioner of Income Tax(A). Therefore, this appeal is devoid of merits. 8. After careful consideration of the above submissions, we observe that the AR has not disputed the fact that except the letter dated 06.06.2008, the assessee did not submit any information or explanation in response to the notices and questionnaire issued by the Assessing Officer. The Assessing Officer had no option but to call the report from the DVO about the valuation of the property purchased by the assessee on 11.8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot find any substantial or corroborating evidence that the assessee has made any unexplained investment but we are unable to see any reasoning to support these findings in the impugned order. 10. The assessee's representative submitted a copy of ITAT 'H' Bench in asessee's own case in ITA No.337/Del/2010 for AY 2004-05 dated 30.07.2010 wherein while deleting ground related to addition made by the Assessing Officer on account of unexplained investment in purchase of property, it was held as under:- "8. The next ground is against the CIT (A)'s order in deleting the addition of Rs.12,00,000/-made by the AO on account of unexplained investment in purchase of property being Flat No. 303, Mayurdhawaj Apartment, Patpar Ganj, Delhi. As against Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amp Duty purposes. The AO has merely made the addition on the basis of Valuation report submitted by the Valuation Officer but no material has been brought on record to establish that the assessee has paid any amount over and above the amount mentioned in the sale agreement. The AO has not examined the seller before making any addition on account of additional consideration paid by the assessee over and above the amount mentioned in the sale agreement. In this view of the matter, we therefore, find that the CIT (A) has rightly deleted the addition on this count. The order of the CIT (A) is thus upheld." 11. On bare reading of above order, we observe that the issue was related to the property Flat No. S-303, Mayurdhawaj Apartments, Patpar G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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