TaxTMI 
TaxTMI 
2015 (6) TMI 355
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....d of by a single consolidated order, 2. The solitary common issue involved in these appeals relate to the deletion by the learned CIT(A) of the additions of Rs. 13,74,290 and Rs. 12,96,500 made by the Assessing Officer to the total income of the assessee on account of unexplained investment allegedly made in the construction of the college building, for assessment years 2007-08 and 2010-11 respectively. 3. The assessee in the present case is a society, which is engaged in the business of imparting intermediate education through Prathibha Junior College and higher education, B.Ed through Sri Sai College of Education. Since no returns of income were being regularly filed by the assessee, a survey under S.133A was carried out in this cas....
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....g the relevant years, including both the years under consideration. In reply, various objections were raised by the assessee to the valuation made by the DVO as per his report. The Assessing Officer, however, found the said objections to be unsustainable and overruling the same, he treated the difference of Rs. 72,02,277 as unexplained investment of the assessee made in the construction of the college building. The said amount accordingly was added by him to the total income of the assessee in the ratio of investments made by the assessee in the relevant years as under- Assessment year Investment made by the assesse Rs. % of Investment Year-wise break up of unexplained investment of Rs. 72,02,779 2007-08 21,21,248 19.08....
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....this case and some material was impounded. During the asst. proceedings, the assessee produced books of account and other documents and expenditure vouchers for verification, which was verified by the AO with reference to the material impounded. The AO had not found any .material contradicting the statements provided alongwith the returns of income. (ii) The A.O. without rejecting the books of accounts or pointing out any defects in the books or in the investment account referred the matter to the Valuation Cell for estimating the construction value of the property. (iii) The assessee made aggregate investment of Rs. 1,11,17,221 during the A.Ys 2007-08 to 2012-13 and the Valuation Officer estimated the same at Rs. 1,83,20,000 and the ....
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....es to unexplained exp the assessing officer does not have power to refer to the expenditure incurred in a construction projects to the valuation Officer. (iii) In the case of CIT Vs. Naveen Gera, the Delhi High Court held that the addition made on the basis of valuation report of the Valuation officer cannot be sustained in the absence of any adverse material found in the course of search. In the case of the appellant, the A.O. had not brought out any adverse material found during the course of survey nor pointed out any discrepancies in the books of the account. 5.5 In view of my observations in Para.SA, I hold that the above case-laws are squarely applicable to the facts of the appellant and the A.O. was not justified in referrin....
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....d the said report, even though obtained could not be utilised for assessment or re-assessment. In the case before the Lucknow Bench, the assessee had maintained proper books of account, which were duly supported by vouchers. No defects in the said books of account or vouchers were however, pointed out by the Assessing Officer nor the books of account were specifically rejected by him. In these facts and circumstances of that case, it was held by the coordinate bench of this Tribunal that the valuation report could be taken into consideration only when the books of account were found to be not reliable. In the case of Sargam Cinema (supra), the Tribunal had come to the conclusion that the assessing authority could not refer the matter of val....