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TMI Blog2016 (7) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the present Tax Appeal for consideration of the following substantial question of law: "(1) Whether, in the facts and circumstances of the case the Income Tax Tribunal was right in law in holding that even when there are no defects in the books of accounts maintained by the appellant, reference to DVO can still be made and addition on account of the difference in valuation between the books and DVO can still be added as income of the appellant ? (2) Whether, in the facts and circumstances of the case the Income Tax Tribunal was right in law in not allowing the addition made on account of alleged unexplained investment in construction cost as allowable business expenditure?" 2. There was a search and seizure operation u/s 132 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt in Tax Appeal No. 1689 of 2005 rendered on 13.09.2006 whereby this Court has held as under. "There is no dispute on the facts that business of the assessee is construction of buildings and then selling them. Even assuming that some expenditure or investment has not been shown in the books of account and some extra expenditure has been incurred during construction of the buildings, that will be added in the cost of the buildings. If any addition is made on account of unexplained investment in the construction, the expenditure to that extent has to be allowed as deduction of expenditure on the construction. Therefore, net result will remain the same. We, therefore, see no infirmity in the order of the Tribunal. No interference is called ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iving any elaborate reasons for the same as in the case of Goodluck Automobiles (supra), this Court has already discussed the same. The facts of the present case are identical to the said appeal. In the present case also, the Assessing Officer did not find any glaring discrepancy in the books of accounts and the Assessing Officer who had passed the block order had not made any adverse comments on the expenditure so incurred. Thus, when the Assessing Officer recorded a finding that the accounts are duly audited and complete details are available and when the Assessing Officer has not rejected the books of account, he cannot make a reference to the Valuation Officer. 8. In view of the above, the question raised for consideration in the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X
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