2014 (10) TMI 223

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....DENT:- SRI Y.RATNAKAR JUDGMENT: (Per Honble Sri Justice L. Narasimha Reddy) The respondent is a firm and is assessed to tax. In its returns submitted for the year 1991-92, it has disclosed a sum of Rs. 23,75,000/- towards cost of construction of a building. Incidentally, the firm was maintaining books of account. During the course of processing the returns, the Assessing Officer referr....

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....o the Valuation Officer could not have been made, unless the Assessing Officer rejected or doubted the veracity of the books of account of the respondent. The said order is challenged in this appeal filed under Section 260A of the Income Tax Act (for short the Act). Heard Sri J.V.Prasad, learned Standing Counsel for the appellant and Sri Y.Ratnakar, learned counsel for the respondent. The on....

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....his context that the respondent filed an appeal before the Tribunal canvassing the correctness of the order passed by the Commissioner; and the appeal was allowed. The books of account maintained by an assessee have their own significance and importance in the context of the assessment under the Act. It is on account of the availability of books of account, that the assessee is relieved from th....

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....f the books of account, on their face value, that he could have resorted to an independent valuation. It is here, that the Tribunal maintained the subtle distinction and held that even before ordering the valuation of any property by independent Valuer in respect of an assessee, who maintained books of account, the Assessing Officer must, as a first step, express his lack of confidence in the book....