2010 (6) TMI 602

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.... addition of Rs. 18,46,889 made on account of undisclosed investment under section 69 in construction of house by rejecting the report of DVO in a summary manner. Additional grounds : (2)  Making a fresh reference under section 142A to a registered valuer and further erred by violating the provisions of rule 46A by not providing any opportunity to the AO for offering comments in respect of valuation Report obtained by him." 2. Briefly, the facts are that a joint construction of a residential house No. 4, Azadnagar, near Jain Temple, Dungarpur was made by the appellants [sic-respondents]. Identical portions were constructed. One for assessee Shri Narayan Lal and second for his brother Shri Jayantilal. The construction commenced....

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.... declared by assessee and the cost determined by DVO was treated as unexplained investment under section 69 of the Act and addition made. Likewise for parity of facts and reasons, an addition of Rs. 17,42,443 has been made in the case of Shri Jayanti Lal Jadia. 6. Both the parties agitated the issue before the learned CIT(A), who made a reference to an independent Government approved valuer, Shri D.K. Jain in particular to make specific comment on the issue of load bearing walls versus RCC frame structure and the rates to be applied on the actual construction for determination of correct cost of construction Shri D.K. Jain, the independent approved valuer vide his report dt. 18th Feb., 2006 stated that the said residential structure is a....

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....ference in the cost of construction elucidated by the Government approved valuer of the assessee and the DVO to whom the AO made a reference under section 142A of the Act. The learned CIT(A) has power to correct the assessment made by the AO. Under such circumstances, the learned CIT(A) was under the legal obligation and duty bound to resolve this controversy for determining correct cost of construction of house property under consideration. In order to resolve the controversy, he himself, being not an expert on the matter of valuation, made a reference to an independent valuer with specific direction on the issues of controversy. The view of the independent valuer Shri D.K. Jain to the effect that construction is on load bearing structure ....