1994 (11) TMI 185

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.... hotel called Ashoka Hotel therein. According to the assessee after demolition of the old structure the constuction and renovation of the building in question was started in March 1986 and completed in all respects in the month of July 1987. He had allegedly maintained a complete record, on day-to-day basis, of all the expenditure incurred on the demolition, construction and renovation of the hotel building. On the basis of such record the position of expenditure incurred came to the following :  Old cost up to 31-3-1986    Rs.    47,000.00 Exp. during 1986-87         Rs.  1,83,000.00 Exp. during 1987-88         Rs.&n....

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....d the second report of the DVO and therefore considered the difference between the cost of construction as shown by the assessee in his books at Rs. 2,55,000 and that estimated by the DVO at Rs. 3,80,225 as representing the unexplained investment by the assessee in the construction of the hotel building. He accordingly made an addition of Rs. 1,25,225 under section 69 of the Income tax Act, 1961 ('The Act') to the total income of the assessee.     5. In appeal, however, the learned CIT (A) examined the issue in sufficient detail and held that rejection by the A.0. of the building constuction account in the books of the assessee without pointing out any specific defect was unjustified and that since the estimate made by ....

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.... of the PWD of the State. In this behalf the learned counsel referred to the several decisions of Jaipur Bench referred to by the learned CIT(A) in his order.       8. We have given thoughtful consideration to the arguments advanced on behalf of the parties and after taking into account the material on our record we entertain no doubt that the issue involed in this appeal has been decided by the leatned CIT(A) on correct lines and in confirmity with the consistent view of the Tribunal.     9. Section 34 of the Indian Evidence Act, 1872 makes entries in the books of account relevant in judicial proceedings. The said section says that entries in the books of account, regularly kept in the co....

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....is reflected in the regularly kept books of account pertaining to the business being carried on by him and also gets some corroboration from other independent evidence.         10. Judged in the light of the principles highlighted above the position in the instant case comes to this. The assessee had admittedly kept a record of the expenditure incurred on the construction of the hotel building over the years. Such record was duly supported with relevant vouchers and contained the detailed particulars of the itemwise expenditure on day-to-day basis. The expenditure had duly been reflected in the account books regularly maintained by the assessee in the course of his business. On scrutiny the AO might ....