9911796707
Advanced Search 
TMI Blog2013 (7) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... 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/- made by the Assessing Officer u/s 69C of the Act which he ought not to have sustained. 3.That, without prejudice to the forgoing ground of appeal and alternatively urged that in the facts and circumstances of the case, the Ld. CIT(A) was unjust and erred when - (a) he changed the basis of addition to section69B in place of section 69C invoked by the Assessing Officer. (b) he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come. 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 issue was set aside to the Assessing Officer with the following remarks: "We therefore set aside his order and remand the matter to Assessing Officer with the direction to make assessment in accordance with law on the basis of revised return filed by the assessee. Needless to add reasonable and effective opportunity of being heard shall be afforded to the assessee before the issue is ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing 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 estimation of cost of construction /investment in the show room by the assessee. Howevere, the Ld. CIT(A) allowed reduction of 20% on account of CPWD rates applied by the DVO instead of local PWD rates. The Ld. CIT(A) also allowed benefit on account of difference in cost of internal water supply and sanitary installation, amounting to Rs. 76,714/- determined by the Regd Valuer. The Ld. CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 to Rs. 33,84,578/- as against cost of construction declared by the assessee and considered by the Assessing Officer at Rs. 24,00,929/-. In the instant case the Assessing Officer refereed the valuation to the DVO without rejecting the books of account, therefore, the addition made was not justified in view of the ratio laid down by Hon'ble Supreme Court in case of Sargam Cinema Vs. CIT (2010) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 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 finding is recorded by the Tribunal that the books were never rejected. This aspect has not been considered by the HHCV. In the circumstances, the reliance placed on the report of the DVO was misconceived". By observing these observations, the contention of Hon'ble High Court was set aside and the order passed by the Tribunal was restored by the Hon'ble Apex Court. The facts in the present case a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
