9911796707
TMI Blog2013 (7) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... . This appeal by the assessee is directed against the order of CIT(A), Jodhpur dated 4.1.2011. 2. Following grounds have been raised in this appeal by the assessee: 1.That, in the facts and circumstances of the case, the Ld. CIT(A) has erred in law and in facts in upholding the reference us 142A made by the Assessing Officer to DVO. This is contrary to the well settled position of, and principle of law. In the facts and circumstances of the case, Ld. CIT(A) should not have held so, because the sending of reference was invalid. 2.That, in the facts and circumstances of the case and without prejudice to forgoing grounds of appeal, the Ld. CIT(A) erred in sustaining addition of 9,83,649/- out of the total addition of Rs. 19,29,071/- m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal user by the Assessing Officer. 3.Vide grounds No. 1 to 3 the grievance of the assessee relates to sustenance of addition of Rs. 9,83,649/- out of addition of Rs. 19,29,071/- made by the Assessing Officer u/s 69C of the Income-tax Act, 1961 herein referred as "the Act". 4. The facts of the case in brief are that the assessee filed return of income on 30.10.2005 declaring nil income. Thereafter the case was selected for scrutiny and the assessment was framed u/s 143(3) of the Act at an income of Rs. 21,83,073/-. Against the said order the assessee preferred an appeal to the Ld. CIT(A) who allowed certain relief on account of investment in construction of show room. There after the assessee filed an appeal before the ITAT where the is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A). The Ld. CIT(A) observed that the provisions of section 142A of the Act provides that for the purpose of making an assessment where an estimate of the value of an investment in terms of section 69B of the Act is required to be made, the Assessing Officer may require the VO to make an estimate of such investment and report the same to him. The Ld. CIT(A) was of the view that the Assessing Officer was prima facie right in satisfying that On the basis of books of account and bills and vouchers maintained by the assessee on cost of construction / investment, incurred in show room could not be deduced properly and correctly. He, therefore, held that the Assessing Officer was justified in making reference u/s 142A of the Act to the VO for es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here were certain defects in the vouchers which were either self made or did not convey as for what purpose services had since been taken by the assessee for the construction of show room or other purposes. 9. We have considered the submissions of both the parties and carefully gone through the material available on record. In the present case, it is an admitted fact that the assessee was maintaining proper books of account and cost of construction of show room was recorded in those books of account which were not rejected by the Assessing Officer who referred the matter to the DVO for valuation of the building in question. The DVO determined the cost at Rs. 43,30,000/- as per CPWD rates. The Ld. CIT(A) thereafter modified that valuation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Prithavi Raj Bohar Vs. ITO, ITA No. 429/JU/2010 for assessment year 2005-06 wherein in para 2.6 it has been observed as under:- After considering the orders of the Assessing Officer, the Ld. CIT(A) and the submission of the Ld. Counsel for the assessee, we are of the view that the assessee deserves to succeed in his legal ground. The Hon'ble Supreme Court in the case of Sargam Cinema Vs. CIT (supra) while reversing the order of the Hon'ble High Court has held that the Tribunal decided the matter rightly in favour of the assessee inasmuch as the Tribunal came to the conclusion that the assessee authority could not have referred the matter to then DVO without the books of account being rejected. In the present case, a categorical fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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