2014 (1) TMI 493

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.... substantial questions of law:-            i) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the case is squarely covered in favour of the assessee by the judgment of Hon'ble Supreme Court in the case of Smt.Amiya Bala Paul v. CIT (2003) 262 ITR 407 (SC) especially when the reference with regard to the construction of house building was made to the Valuation Officer under section 131(1) (d) and not under section 55A of the Income Tax Act, 1961 and further keeping in view the provisions of section 142A of the Act?          ii) Whether on the facts and in the circumstances o....

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....y the assessee on different points of valuation report, relief to the extent of Rs. 1,23,477/- was given to the assessee. Since the assessee failed to explain the source of investment in the construction of the above house building to the extent of Rs.2,37,883/- during the year in question, the same was deemed to be the income of the assessee and added back under section 69 of the Act. Aggrieved by the order, the assessee filed appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. Vide order dated 27.3.2003, Annexure A.2, the CIT(A) dismissed the appeal. Still not satisfied with the order, the assessee filed appeal before the Tribunal. Vide order dated 31.8.2004, Annexure A.3, the Tribunal allowed the appeal of the assessee holdi....

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.... hand, controverting the submissions made by learned counsel for the revenue, learned counsel for the assessee submitted that without rejection of the valuation of the property shown in the books of account, in view of the judgment of the Apex Court in Sargam Cinema v. CIT, (2010) 328 ITR 513, reference to the DVO was bad in law. It was argued that once the reference itself was bad and the amount which was sought to be added amounting to Rs. 2,35,933/- was only on estimate basis, the Tribunal had rightly decided the issue in favour of the assessee. 6. After hearing learned counsel for the parties, we do no find any merit in the appeal. 7. The Apex Court in Sargam Cinema's case (supra) had held as under:-      &nb....