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TMI Blog2022 (6) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... report of the export and sustained an addition. AR objected and submitted that even the ld. CIT(A) not being technical person has erred in sustaining the balance addition and all the contentions raised by the assessee has not been dealt with. Thus, even the action of the ld. CIT(A) is not satisfactory since the contentions raised before the Assessing Officer or the DVO has not been considered even by the CIT(A) fully. The objections of the assessee that the findings of the ld. CIT(A) on the technical issue is also not correct. Therefore, looking to the peculiar facts figures and contentions raised in respect of the DVO s report. It is in the fair interest of the justice to restored the matter back to the file of the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there being no provision in the Act authorising the survey team to obtain estimated report of the registered valuer, placing reliance on such report was contrary to law particularly when reference to DVO was held by the same Learned CIT(Appeals) as contrary to law 2. Since the Learned CIT(Appeals) had categorically held that reference to the DVO without rejecting the books of account was contrary to law, his placing reliance on the estimated report of the registered valuer without first detecting any suppression in investment recorded in the books of account and ultimately sustaining addition of Rs 1290089 (1214500 +75589) again based on pure estimations of the Learned CIT(Appeals), are contrary to facts and law 3 That the Le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e total investment in the current year at Rs. 1,00,31,350/-. The Assessing Officer has derived difference of Rs. 53,00,989/-. 4.2 The assessee was asked to explain the same with evidence. The assessee vide letter dated 27/03/2014 has raised his objection and stated that the DVO has calculated the value on basis of the rate prescribed by the CPWD which are generally higher and based on the rates prevailing in Delhi and other cosmopolitan cities and could not be applied for construction in small towns where the cost construction could be much lower than the CPWD rates approved by the Board. 5. The Assessing Officer found an opinion that burden placed before the assessee is not discharged by him and not accepted the explanation furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value as shown in the books of accounts. Whereas the registered valuer has considered the detailed analysis of material quantities and adopted the market rate as on date of construction which is the correct method of valuation. III. The DVO had taken the rates of contraction higher than the Central Valuation Board. The rates of Central Valuation Board rates are for contraction on column system structure/ RCC slab/Marble and for best quality construction. Hence, any addition made on the basis of DVO's report is unlawful and opposed to facts. The DVD has added 2% of value for supervision charges. The fact was explained to him that Mr. B.M. Narang himself is an engineer and supervision was done by him only. No outside perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh the submission of the assessee, the ld. CIT(A) has reduced the addition form Rs. 53,00,989/- to Rs. 12,14,500/-. The relevant finding of the ld. CIT(A) in this regard is as under:- Decision- Since the factual position has already been discussed as above in Ground No. 2 I am of considered opinion that the AO was not justified in making addition on account of investment made by assessee and estimated by the DVO and also non-appreciation of facts available before him. As per DVO s report, the total cost of construction comes to Rs. 5,79,64,044/- and @ 7.5% he had allowed Rs. 43,47,303/- for contractor profit. Keeping in view of Hon ble Apex Court decision for 10% net profit it should be 10% amounting to Rs. 57,96,404/- in place o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deleted. 9. All the grounds raised by the assessee in this appeal are related to the addition made by the Assessing Officer and partly sustained by the ld. CIT(A) is in relation to alleged difference between the investment shown in the books and valuation made by the DVO which has been reduced by the ld. CIT(A) and aggrieved from the said order the assessee has referred this appeal challenging the action of the ld CIT(A) on the grounds raised by the assessee. 10. Per contra the learned departmental representative has also confirmed that the ld. CIT(A) has tried to comment on the report of the technical excerpts. As regards the chance to be given he has stated that the assessee was given chance to give the details and appear before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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