9911796707
TMI Blog2016 (3) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of the Act it be held that, the addition made of Rs. 12,25,142/- & 69,32,586/- u/s. 69B of the Income Tax Act on account of unexplained investment in residential bungalows ignoring the entries in the books of account is not in accordance with the provisions of the Act. The addition so made be deleted. Just and proper relief be granted to the appellant on this score. 2. The appellant prays to be allowed to add, amend, modify, rectify, delete, raise any grounds of appeal at the time of hearing. 3. The issue arising in the present appeal is against the addition of Rs. 12,25,142/- and Rs. 69,32,586/- under section 69B of the Act on account of unexplained investment in residential properties. 4. Briefly, in the facts of the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion cost of Rs. 54,32,505/- was debited in the books of account. The DVO valued the investment at Rs. 1,25,02,000/- and the assessee was asked to explain the excess investment of Rs. 70,69,495/-. The assessee explained its case before the Assessing Officer and pointed out that in addition to Rs. 54,32,505/-, further sum of Rs. 10,36,909/- was expended on this account by M/s. Aswani Associates. The plea of the assessee was rejected by the Assessing Officer and sum of Rs. 60,32,586/- was considered as unexplained investment under section 69B of the Act. 5. The CIT(A) upheld the order of Assessing Officer. The plea raised by the assessee before the CIT(A) was that no document / evidence of suppression was found in respect of investment in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Department. Our attention was drawn to the entries at page 26 of the Paper Book, wherein the details of the construction account are maintained in the books of account. He thus, contented that where no incriminating material was found during the course of search, there was no merit in any addition in the hands of the assessee. An alternate plea was raised by the learned Authorized Representative for the assessee that whether in the case of search or otherwise, the law is settled by the Hon'ble High Court of Karnataka in CIT Vs. Vasudev Construction (2014) 44 taxmann.com 30 (Karnataka), wherein it has been held that where no material was found during the course of search to indicate that the assessee had not recorded expenses incurred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and had also shown the construction cost of commercial building at S.P. Heights, Mumbai -Pune Road, at 54,32,505/- in the books of account. The assessee was maintaining books of account regularly. The Assessing Officer in the assessment order has also noted that the cost of construction was debited to the books of account of the assessee. During the course of assessment proceedings the Assessing Officer made a reference to the DVO for determining the cost of construction and fixtures of the said properties. The copy of the DVO report is enclosed at pages 27 to 32 of the Paper Book. The perusal of the report for commercial building at S.P. Heights reflects that the period of construction of the said property was 2004-05 to 2006-07. Further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 158BD of the Act. 10. Now, coming to the last objection of the learned Authorized Representative for the assessee that where the assessee is maintaining books of account, no reference can be made to the DVO without rejecting the books of account. Admittedly, the Assessing Officer has not rejected the books of account in the case of assessee though the Assessing Officer notes that the cost of construction is reflected in the books of account. In this regard, we find support from the ratio laid down by the Hon'ble Delhi High Court in CIT Vs. Bajranglal Bansal reported in 241 CTR 64 (Del) for the proposition that the opinion of the DVO per se was not an information and could not be relied upon without books of account, being rejected. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
