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TMI Blog2005 (4) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... account, which are open to verification, and its correctness is not doubted, it should be accepted. In case of doubt, the Assessing Authority can refer the matter to the valuation Cell for determination of cost of construction and rely upon such report as an evidence, but it is open to the assessee to challenge the correctness of such valuation report and in case if it establishes that such report is not correct and reliable, expenditure shown in the construction as per the books of account is liable to be accepted. Thus, we do not find any error in the order of Tribunal. Question referred is accordingly answered in affirmative in favour of the assessee and against the revenue. - HON'BLE R.K. AGRAWAL AND RAJES KUMAR For the Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt in the normal course of business and all the expenditure incurred on construction of Factory building stood recorded on day-to-day basis. It was submitted that it had already undertaken construction of Factory building prior to the relevant previous year when it had incurred an expenditure of ₹ 2,73,538 in the accounting period ending 31-3-1984. He submitted that the expenditure so incurred, was not disturbed by the Assessing Officer when he framed the assessment for the assessment year 1984-85 on 22-2-1987. It was also submitted that the assessee also raised serious objections against the report of Departmental Valuation Officer which have altogether been ignored by the revenue even though material defects, deficiencies and discr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case the addition made is not justified. The assessee is admittedly maintaining the regular books of account where expenditure incurred in construction of factory has been faithfully recorded. Further a part of the expenditure incurred by the assessee prior to the relevant previous year stands accepted by the Assessing Officer when such expenditure was also recorded in the same manner as was recorded during the relevant previous year. The only basis for making the impugned addition is the report of the DVO which on the face of it suffered from material defects, as pointed out by the assessee during the course of assessment as also appellate proceedings. The objections taken by the assessee against the accuracy o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he books of account. Learned standing counsel is not able to show that the findings recorded by the Tribunal are wrong and based on no material and are perverse. Thus, there is no reason to interfere with such findings. 4. If the assessee maintained books of account in the regular course of business and necessary entries relating to the expenditure towards cost of constructions are entered in the books of account, which are open to verification, and its correctness is not doubted, it should be accepted. In case of doubt, the Assessing Authority can refer the matter to the valuation Cell for determination of cost of construction and rely upon such report as an evidence, but it is open to the assessee to challenge the correctness of such valu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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