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TMI Blog2022 (5) TMI 1154X X X X Extracts X X X X X X X X Extracts X X X X ..... e is satisfied about the correctness or completeness of the accounts. 2. On facts & circumstances of the case and in law, the CIT(A) erred in deleting the addition of Rs.1,60,19,636/- made by AO u/s 69 based on valuation report by relying upon the decisions without appreciating that those decisions having rendered prior to amendment u/s 142A, were distinguishable on law. 3. On facts & circumstances of the case and in law, the CIT(A) erred in deleting the addition of Rs.1,60,19,636/- made by AO u/s 69 based on valuation report on ground that AO has not pointed out any defect in the value disclosed, without appreciating that before the AO or even before the DVO, no details of investment regarding constructions/renovation, bills/vouchers were produced even though the guest house in the said premises was being used for marriage/parties etc. 4. On the facts and circumstances of the case and in law, the CIT(A) failed to allude to the relevant facts & circumstances and misread the provisions of 142A to arrive at the conclusion. The order of the CIT(A) therefore suffers from perversity in view of the ratio of decision in case of Vijay Kumar Talwar 330 ITR 1(SC), Sudarshan Silk Sar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set, the ld. Counsel for the assessee has contended that he does not wish to pursue the Cross objection filed on behalf of the assessee. Therefore, the Cross Objection of the assessee is dismissed as withdrawn. 5. Apropos the Department's appeal, the ld. D.R. has contended that on the facts and circumstances of the case and in law, the ld. CIT(A) erred in deleting the addition of Rs.1,60,19,636/- made by the Assessing Officer under section 69 of the I.T. Act, based on the valuation report, on ground that without pointing out any defects in the books of account, the Assessing Officer could not have made a reference to the DVO under section 142A of the I.T. Act, without appreciating that section 142A of the I.T. Act has been completely amended w.e.f. 01.10.2014, wherein, there is a provision that the Assessing Officer can make reference whether or not he is satisfied about the correctness or completeness of the accounts; that the CIT(A) erred in deleting the addition of Rs.1,60,19,636/-, relying upon the decisions, without appreciating that those decisions have been rendered prior to the amendment brought in section 142A of the I.T. Act; that the ld. CIT(A) erred in deleting the add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... himself could not reject the books of the assessee, since he could not find any defect therein; that it is trite that the provisions of section 142A of the I.T. Act do not take precedence over those of section 145 of the I.T. Act; that as such, the valuation given by the DVO could not be substituted for that disclosed by the assessee in its books of account; that the stand of the Department that the amended provisions of section 142A of the I.T. Act are applicable to the present case, is wholly incorrect, inasmuch as the assessment under consideration is for assessment year 2013 - 14, whereas the amended provisions of section 142A have expressly been made applicable, by substitution of the section by the Finance (No.2) Act, 2014, w.e.f. 1.10.2014; that the ld. CIT(A) has correctly relied on the decision in the case of 'CIT vs. Shivakami Company Pvt. Ltd.', 159 ITR 71 (SC) and that in the case of 'K.P. Varghese vs. CIT', 131 ITR 597 (SC); and that for these reasons, the appeal filed by the Department has no force whatsoever and the same is liable to be dismissed. 7. Heard. The issue is as to whether the ld. CIT(A) is correct in deleting the addition of Rs.1,60,19,636/- made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (1) shall, for the purposes of dealing with such reference, have all the powers that he has under section 38A of the Wealth-tax Act, 1957 (27 of 1957)." 11. A reading of the extant provisions of section 142A(1) and (2), juxtaposed with the erstwhile provisions of section 142A (1) and (2) reveals that earlier, the Assessing Officer could refer the valuation of the property to the DVO where an estimate of the value of such property was reported to be made. Under the present provisions, however, the Assessing Officer may make reference to the DVO whether or not he is satisfied about the correctness or completeness of the accounts of the assessee. 12. The present provisions have expressly been made applicable with effect from 1.10.2014. The year under consideration is assessment year 2013 - 14. Therefore, it is the earlier provisions which are applicable for our present purposes and not the amended ones. As noted herein above, in the search conducted, no incriminating material was found against the assessee. The search also did not reveal any evidence of excess consideration paid by the assessee to the seller of the properties, over and above the agreement value. The Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X
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