2006 (9) TMI 560

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....osed for admission of these appeals: "(i) Whether on facts and circumstances of the case the Income Tax Appellate Tribunal was right in law and on facts in upholding the deletion of addition made u/s 69 of the Act on the differential value of the cost of construction? (ii) Whether on the facts and circumstances of the case the impugned order of the Income Tax Appellate Tribunal suffers from ....

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....ness of building cost actually debited in the books of accounts with reference to the valuation arrived at by the assessee's valuer, the use of spartex/glazed tiles in the building but not found recorded in the books of accounts, and non recording of expenditure relating to borewell. Other than these defects, no other major defects were found by the AO. As per our considered view, even though ....

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....spect of additions of unexplained investment which has ultimately resulted into unexplained expenditure on the project, to serve the end of justice. As the addition in the Assessment Year 1991-92 has been made u/s 69C, but there is no sale or profit in the Assessment Year 1991-92, in view of discussion made hereinabove, the Assessing Officer is directed to increase the work in progress accordingly....

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....ssing Officer u/s 69 in the Assessment Year 1992-93, is directed to be retained subject to allowing deduction of unexplained expenditure of Rs. 18.61 lacs (5.90+12.71). Accordingly, the Assessing Officer is directed to give deduction of unexplained expenditure of both the years to the extent sustained by us, amounting to Rs. 18.61 lacs (5.90+12.71), while computing income under the head "profit & ....