2016 (7) TMI 931

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....t Year 1995-96, the assessee has preferred the present Tax Appeal for consideration of the following substantial question of law: "(1) Whether, in the facts and circumstances of the case the Income Tax Tribunal was right in law in holding that even when there are no defects in the books of accounts maintained by the appellant, reference to DVO can still be made and addition on account of the difference in valuation between the books and DVO can still be added as income of the appellant ? (2) Whether, in the facts and circumstances of the case the Income Tax Tribunal was right in law in not allowing the addition made on account of alleged unexplained investment in construction cost as allowable business expenditure?" 2. There was a ....

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....ot res integra in view of the decision of this Court in Tax Appeal No. 1689 of 2005 rendered on 13.09.2006 whereby this Court has held as under. "There is no dispute on the facts that business of the assessee is construction of buildings and then selling them. Even assuming that some expenditure or investment has not been shown in the books of account and some extra expenditure has been incurred during construction of the buildings, that will be added in the cost of the buildings. If any addition is made on account of unexplained investment in the construction, the expenditure to that extent has to be allowed as deduction of expenditure on the construction. Therefore, net result will remain the same. We, therefore, see no infirmity in....