2005 (4) TMI 570

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....he addition of Rs. 3,10,719 on account of difference in the cost of construction as added by the Assessing Officer under section 69B of the Income-tax Act ?" 2. The brief facts of the case giving rise to the present case are that during the relevant previous year, assessee/opposite party (hereinafter referred to as 'assessee') completed its Factory building and disclosed the cost thereof at Rs. 5,38,350 in its books of account. Cost of construction shown by the assessee was also supported by the report of registered valuer. Assessing authority further made a reference to the Departmental Valuation Cell who worked out the cost of construction at Rs. 8,49,069. Assessee raised objections against the report, but the same did not find favour ....

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....ed, boundary Wall, two iron Gates for Rs. 47,500 on 4-2-1984 yet the Departmental Valuation Officer had ignored and worked out the cost of construction in respect of this portion of the property also even though, it was already in existence. It was submitted that the addition on this account as worked out by the Departmental Valuation Officer, comes to Rs. 2,64,898. Reference was also made to the report of Departmental Valuation Officer in which it had been accepted that the construction is of poor specification and sheds are unplastered while the Machine-sheds is even without flooring and the construction is below ordinary type, yet he had made no allowance on this account. It was submitted that when no defects, discrepancies or omissions ....

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....rse of the thing are relevant and carry with them a presumption of their correctness until the contrary is proved. We do not find any material on record to even suggest that the entries recorded by the assessee in its books of account are incorrect. Therefore, on a consideration of relevant facts and circumstances we see no reason to sustain the impugned addition. It is deleted." 3. Heard Sri Govind Krishna, learned standing counsel. Learned standing counsel is not able to assail findings recorded by the Tribunal that "only basis for making the impugned addition was the report of the Departmental Valuation Officer which on the face of it suffers from material defects as pointed out by the assessee during the course of assessment as also ....