TaxTMI 
TaxTMI 
2019 (9) TMI 903
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....ion officer, valuation sale, income tax department, Agra to determine year-wise construction in the aforesaid property. On the premise of valuation report and finding no merits in the objection raised by the assessee, in absence of supporting evidences, the AO determined unexplained investment in the said property at Rs. 65,91,318/- u/s 69C, and accordingly he made the addition. 3. Aggrieved assessee went in appeal before the ld. CIT(A) where ld. CIT(A) has rejected the appeal of the assessee vide para 10 of the impugned order after considering the written submissions, objection of the assessee to valuation report filed by the assessee, report of the AO, remand report and rejoinder of the assessee. 4. The ld. CIT(A) has observed vide para 10 as follows: "10. I have considered the entire facts relating to valuation of the property under consideration as discussed above from para 5 to 9. The ld. AR has first argued in the written submission challenging the reference made u/s 142A for valuation of the property as taken up in Ground No. 2 and 3 contending that no material has been found during search indicating either any undisclosed income of the assessee from undisclosed sources ....
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....e in first place has made such investment outside the books. In the present case, no books are being maintained by the assessee (appellant). In view of the facts that the assessee (appellant) has declared undisclosed investment of Rs. 25,00,000/- in construction of the above mentioned property at Transport Nagar, the unaccounted investment made by the assessee (appellant) is prima facie established and in absence of any books of account, it was not possible for the AO to determine whether the declaration of unaccounted investment in the said house property as surrendered by the assessee (appellant) after search was sufficient or not. Therefore, the condition for making reference u/s 142A of the Act for estimating the investment made in the above property in Transport Nagar that there should be something on record to show that the assessee in first place has made such investment outside the books, is very much satisfied keeping in view the fact that the assessee (appellant) has herself admitted about making of unaccounted investment in the said property by surrendering Rs. 25,00,000/- and in absence of any books of account, it was not possible for the AO to determine whether such su....
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....t of the DVO was not accepted by the AO without assigning any reason as to why he preferred the valuation report made on the basis of plinth area rate as not reasonable than the report made on the basis of detailed item wise rate method. He was not convinced with the objection of the AO regarding rejecting the valuation report prepared on the basis of item wise method holding that the valuation made on the basis of item wise method was more realistic and justified. He refers to the valuation report made by CPWD who also confirms that plinth area rate is an approximate method and is used for preliminary. 6. Under these facts and circumstances the ld. CIT(A) has accepted the second valuation report prepared by the valuation officer on the basis of detailed item wise method which is more scientific in arriving correct investment as even admitted by the valuation officer and thereby the objection of the AO for not considering the second valuation report was rejected and the assessee was granted part relief. Considering the objection of ld. AR and taking into consideration the facts that registered valuer of the assessee has taken amount of such contingency/miscellaneous items as 1% an....
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....ct that appellant assessee has made investment in construction of said property No. 5/157. 12. The ld. CIT(A) has dealt with the issue at length after considering detailed submissions filed by the assessee, valuation report, remand report of the AO and rejoinder of the assessee on the remand report as well as the objections raised by the assessee to the valuation report. The CIT(A) has accommodated the assessee by and large allowing relief of Rs. 37,54,541/- that considering contingency and miscellaneous items @2% and the method of valuation on the basis of detailed item wise as per second valuation report wherein more scientific method was followed in arriving correct investment as even admitted by valuation officer. 13. The finding of the ld. CIT(A) are appears very reasonable and logistic on the premises of scientific approach duly supported with judicial pronouncement. Therefore, the assessee should not have any grievance from the impugned order. 14. In the case of Shri Sanjeev (supra) the facts were that the assessee has maintained books of account, balance sheet and profit and loss account for the three years and filed the material documentary evidence with year wise brea....