Court rules against addition based on valuation report for unexplained income in construction

The High Court of Gujarat held in favor of the assessee, ruling that no addition can be made based on the valuation report of unexplained income invested in construction. The court emphasized that adding unexplained income to the investment would result in a "zero" balance, citing a precedent that a Valuation Officer cannot determine the cost of construction.

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The High Court of Gujarat ruled in favor of the assessee, stating that no addition can be made based on the valuation report of unexplained income invested in construction. The court emphasized that adding unexplained income to the investment would result in a "zero" balance. The decision was influenced by a previous case stating that a Valuation Officer cannot be consulted to determine the cost of construction.

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