2016 (2) TMI 833

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.... 1. Assessee has filed this tax appeal in which following substantial question of law came to be framed: 1."Whether, in the facts and circumstances of the case, the ITAT was right in law in holding that a sum of Rs. 40,28,613 was required to be confirmed 'being the suppression of cost of construction' when it had already given a finding that an amount of Rs. 39,20,400 was invested by the....

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....efore, referred the matter to the Department Valuation Officer for his opinion. On the basis of such opinion and other materials on record, Assessing Officer concluded that in the cost of construction, there was under valuation of Rs. 40.28 lacs (rounded off). 3. The assessee carried the matter in appeal and raised the questions of addition of Rs. 39.20 lacs as also the further addition of Rs. 40....

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....is appeal regarding addition of Rs. 39.20 lacs, we may not refer to the discussion of the Assessing Officer and the Tribunal in this respect. However, we may briefly record that it was during the statement recorded on 9.1.1997 of Shri D.V.Jethani, one of the directors of the Company that he had made the disclosure of having received sum of Rs. 39.20 lacs which was not accounted for. Such a stateme....

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....ssessing Officer was the assessee's additional income. He, therefore, in addition to said sum of Rs. 39.20 lacs made further addition of Rs. 40.28 lacs. 6. From the perusal of the order of Assessing Officer as well as of the Appellate Tribunal, it clearly emerges that the disclosed cost of construction of Rs. 191.85 lacs was inclusive of Rs. 39.20 lacs of disclosure made by the assessee durin....