TaxTMI 
TaxTMI 
2015 (2) TMI 1364
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....investment relying upon the valuation done by the DVO." 3. Brief facts are that the AO during the course of assessment proceedings noticed from the statement of affairs of the assessee that it has made investment in purchase of house property no. SF-22, 2nd floor, viva College Complex, Paragpur, G. T. Road, Jalandhar, Punjab to the tune of Rs. 54,32,075/- in the relevant AY. This investment is made by virtue of purchase agreement of the above stated property with the builder, College Estate Ltd. The relevant clause for allotment of the above stated property, as reproduced by AO, reads as under: "The developer agrees to allot to the allottee the premises admeasuring 2683 sq. Ft. (249.58 sq. Mtr) of super area bearing Unit No. SF 22 on second floor, in the Complex known as "Viva Collage" @ Rs. 2250/- per sq. ft. (Rs. 24,187.50 per sq. Mtr.) The total agreed consideration (The Sale consideration) for sale of the premises is Rs. 60,36,750/- (Rupees sixty lacs thirty six thousand seven hundred fifty only) the detailed terms and conditions of sale shall be fully described in the Buyer space Agreement for the Premises which shall be executed between the parties after the signing of thi....
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....ing to Ld. Counsel, this property is purchased from a builder and if at all reference is to be made that should be made in the hands of the builder and not in the hands of the assessee because the property is purchased on agreed sale price and no construction has been carried out by the assessee. Ld. Counsel for the assessee relied on the decision of Hon'ble Delhi High court in the case of CIT Vs. Naveen Gera (2010) 328 ITR 516 (Del.) and Hon'ble Supreme Court in the case of K. P. Verghese Vs. ITO [1981] 131 ITR 597 (SC) . On the other hand, the Ld. Sr. DR relied on the order of the AO. 5. We have heard rival submissions and gone through facts and circumstances including case records. Admitted facts are that the assessee has purchased an underconstruction property from a builder/developer in term of the above reproduced clause of Memorandum of Understanding (para 2 above), the consideration rate for allotment of premises is @ Rs. 2250/- per sq. ft. admeasuring about 2683 sq. ft. The assessee made payment of Rs. 54,33,075/- in the relevant FY 2007-08 relevant to this AY 2008-09 out of the total consideration of Rs. 60,36,750/-. The property is under construction in the relevant yea....
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....5/Del/2005 dated 04.05.2008 in the case of ITO Vs. Rajeshwar Nath Gupta held as follows: "15. A perusal of the aforesaid provisions shows that section 142A is attracted, inter alia, where the assessee is found to have made investment outside the books of account or where any such investment made by him is not fully disclosed in the books of account. The condition precedent for making the reference by invoking the provisions of section 142A thus is that there should be something on record to show that the assessee in the first place has made such investment outside the books or the investment so made by him is not fully disclosed in the books of account and once this condition is satisfied, the quantum of such investment made can be ascertained by the Assessing Officer by making a reference under section 142A in order to make the addition under section 69 or 69B, whichever is applicable. In the present case, the relevant property was purchased by the assessee during the year under consideration for Rs. 15 lakhs and the amount of the said consideration was paid out of its disclosed sources as accepted even by the Assessing Officer in the reassessment. A perusal of the assessment or....
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....f the provisions of section 142A of the Act the reference to DVO can be made only when there is a requirement by the AO for making such reference and such requirement would arise when there is some material with the AO to show that whatever estimate or consideration declared by assessee is not correct or not reliable. The use of the word 'require' is not superfluous but signifies a definite meaning, whereby formation of mind even preliminary on objective basis by the AO is very much necessary. From the bare reading of assessment order, it does not suggest that there is any material which indicates that the assessee has paid any amount over and above the declared consideration for the purpose of making addition of unexplained investment u/s. 69 or 69B of the Act. In the absence of the same, the CIT(A) has rightly deleted the addition. We confirm the same. This issue of revenue's appeal is dismissed. 8. Ground no. 2 of revenue is in respect of allowing relief of Rs. 1 lac on account of low drawing for household expenses. For this, revenue has raised following ground no.2: "2. That, the Ld. CIT(A), Asansol has erred in law and on facts by allowing the relief of Rs. 1,00,000/- disal....