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TMI Blog2014 (4) TMI 860X X X X Extracts X X X X X X X X Extracts X X X X ..... VO was baseless is set aside – thus, there is no need to interfere in the findings arrived at by the authorities – Decided against Revenue. - Tax Appeal No. 293 of 2014 With Tax Appeal No. 294 of 2014 - - - Dated:- 15-4-2014 - Akil Kureshi And Sonia Gokani,JJ. For the Petitioner : Mrs. Mauna M. Bhatt, Advocate For the Respondent : Mr. B. S. Soparkar, Advocate ORDER (Per : Honourable Mr. Justice Akil Kureshi) 1. These appeals arise out of a common judgment of the Income-tax Appellate Tribunal (hereinafter referred to as 'the Tribunal') dated August 23, 2013, for the assessment year 200506. Though the dispute is common, since they were crossappeals before the Tribunal, that the assessee's appeal havin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said property over and above the amount already declared in the books of accounts. This is not an assessment which was made in the ordinary course of proceedings but admittedly a search under Section 132 was carried therefore it is expected that the addition consequent thereupon should be corroborated with evidence detected at the time of search. As far as the books of accounts of the assessee and the recording of the investment in the construction of the house were concerned, the AO had not found any discrepancy. For this legal proposition, a decision of jurisdictional High Court pronounced in the case of Goodluck Automobiles, 26 Taxman.com 264 has been cited wherein the Court has held that unless the books of accounts are rejected the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referring to the decision of the Supreme Court in the case of Sargam Cinema (supra) had observed as under : 12. The facts of the present case may be examined in the light of the statutory scheme discussed hereinabove as well as the decision of the Supreme Court in Sargam Cinema (supra). In this regard, a perusal of the assessment order reveals that the Assessing Officer has categorically recorded a finding to the effect that the accounts are duly audited and complete details are available. From the tenor of the order of the Assessing Officer, it is apparent that he has made the reference to the Valuation Officer merely to seek expert advice regarding the cost of construction. There is nothing in the assessment order to suggest that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounted investment in the construction of the building in question and that the books of account do not reflect the correct cost of construction. Under the circumstances, there was no occasion for the Assessing Officer to make a reference to the Valuation Officer. As held by the Supreme Court in the case of Sargam Cinema (supra), unless the books of accounts are rejected, the Assessing Officer cannot make a reference to the Valuation Officer. The reference made to the Valuation Officer, not being in consonance with the provisions of law, was, therefore, invalid. Accordingly, the report made by the Valuation Officer pursuant to such an invalid reference could not have been made the basis for addition under section 69 of the Act. 6. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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