1992 (3) TMI 35

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....ment was originally completed on an income of Rs. 44,670 on March 25, 1974. During the relevant assessment year 1971-72, for which the previous year ended on March 31, 1971, the assessee made certain additions and alterations to its Minerva Cinema building and the total expenditure incurred according to the books of account maintained by the assessee was Rs. 3,83,320. The Income-tax Officer, 'C' Ward, jodhpur, referred the matter to the Valuation Cell and the Valuation Officer has estimated the cost of additions and alterations at Rs. 4,48,400. The assessment was reopened by issuing notice under section 148 and the assessee was confronted with a copy of the valuation report. According to the Income-tax Officer, the assessee's version that i....

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....The Tribunal observed that "in our view, the reference to the valuation cell was not justified. The expenditure recorded in the books of account should have been accepted. We may add that, where the books of account are properly maintained and the expenditure is recorded therein with full details and is supported by vouchers, the total expenditure so reflected in the books has to be accepted in preference to any estimate even if it is by an expert. We direct that the addition be deleted." From a perusal of the order of the Tribunal, it would be evident that even the reference to the valuation cell by the Income-tax Officer was held not justified on the ground that the books of account are maintained and the expenditure is recorded therei....