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TMI Blog2014 (10) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... ent valuation - the Tribunal maintained the subtle distinction and held that even before ordering the valuation of any property by independent Valuer in respect of an assessee, who maintained books of account, the AO must express his lack of confidence in the books of account - That is not been done in the present case, the reference to the Valuation Officer cannot be sustained in law - though Section 142A of the Act was amended in the year 2004 with retrospective effect from 1972, it is difficult to sustain the exercise undertaken by the AO on the touch stone of that provision – Decided against revenue. - I.T.T.A. No. 93 of 2003 - - - Dated:- 9-9-2014 - SRI L. NARASIMHA REDDY AND SRI CHALLA KODANDA RAM, JJ. FOR THE APPELLANT:- SRI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r short the Act). Heard Sri J.V.Prasad, learned Standing Counsel for the appellant and Sri Y.Ratnakar, learned counsel for the respondent. The only dispute is about the value of the building constructed by the respondent firm. The respondent furnished its value at ₹ 23,75,000/-. The particulars thereof were mentioned in the books of account. The Assessing Officer could have doubted the value of the building, if only he did not believe the books of account or rejected them. However, straightaway, he referred the matter to the Valuer. The report was taken into account and the difference of the amount was treated as unexplained investment. The Commissioner made an observation that no amount could have been added as unexplained i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. It is here, that the Tribunal maintained the subtle distinction and held that even before ordering the valuation of any property by independent Valuer in respect of an assessee, who maintained books of account, the Assessing Officer must, as a first step, express his lack of confidence in the books of account. That not having been done in the instant case, the very reference to the Valuation Officer cannot be sustained in law. In Sargam Cinema Vs. Commissioner of Income Tax. , the Honble Supreme Court held that the Assessing Authority cannot refer the matter to a Departmental Valuation Officer unless the books of account maintained by the assessee were rejected or disbelieved. The same was followed by the Punjab and Haryana High C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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