2017 (12) TMI 310

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....T/ 1988 for the block period 1987-88 to 24.12.1996, by proposing the following questions, stated to be the substantial questions of law: (A) Whether in the facts and in the law ITAT is justified in deleting the addition made by the AO under section 69C of the Act? (B) Whether in the facts and in the law ITAT is justified in deleting the addition by holding that there is no evidence, whereas the ITAT had confirmed addition on account of cash on money receipt? 2. The respondent assessee was carrying on the business of construction and had constructed a building known as "Dhanranjni" Commercial Complex. A search came to be carried out in the case of M/s. Rajni Developers Private Limited, an associate firm of the assessee c....

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..../-       Rs.52,64,716/- 4. The stand of the assessee before the Assessing Officer was that it was regularly maintaining the books of account and that during survey under section 133A of the Act at its business premises, the books of account for the financial years 1995-96 and 1996-97 had been found. It was contended that it is settled legal position that when the assessee maintains account regularly, addition cannot be made on the basis of the report of the Valuation Officer without pointing out any defects in the books. The Assessing Officer took note of the fact that the Valuation Officer had determined the value of the building at Rs. 1,87,18,104/-, whereas the assessee had shown the cost of the building at ....

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....y the Tribunal by submitting that the material on record establishes that the books of account seized during the search were not written up to the date of the search and no cash balance was drawn. It is also established that non day to day stock register has been maintained in respect of the building "Dhanranjni" and hence there was no check on the raw material. It was argued that the Assessing Officer was therefore, wholly justified in rejecting the books of account of the assessee and referring the matter to the Valuation Cell for estimating the cost of construction of the building. 8. From the facts as emerging from the record it is evident that insofar as the cost of construction of the building 'Dhanranjni' is concerned, no incrimin....