2011 (2) TMI 1626

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ount of under valuation of the property." 2. We have heard the learned DR and perused the findings of the authorities below. None appeared on behalf of the assessee despite service of notice through registered post. A/D card duly served upon the assessee is on record. The assessee is, therefore, proceeded ex parte. 3. Briefly, the facts of the case are that the AO made addition of Rs.36,71,532/- on the basis of difference in the valuation of cost of construction determined by the DVO and the cost disclosed by the assessee in its books of account. In the assessment order the AO has stated that during the course of original assessment proceedings, the matter of determining of fair valuation of the multiplex constructed by the assessee w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cogent material found against the assessee to establish that any of the expenditure has not been recorded by the assessee in the books of account. It was further contended that there was no fault on the part of the assessee for filing the submission. It was further submitted that the difference worked out by the DVO in his report is not considerable as it was worked out to 5.46% of the total cost incurred. Therefore, the addition should not have been made on mere estimate. The assessee relied upon the following decisions: (1) ACIT Vs Radheshyam Poddar 86 TTJ (Asr) 558 (2) ACIT Vs Bandana Roy 77 TTJ (Gau) 66 (3) CIT Vs Kushal Chand Nirmal Kumar 183 CTR 503 (MP) (4) CIT Vs S. K. Construction 167 Taxman 171 ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... making the addition on the basis of the valuation report of the DVO which itself bears several defects. These defects have been mentioned on page seven of this order as much as certain values have been taken twice like in respect of kitchen equipment, acoustics and glow signs etc. Similarly factual errors resulting in difference on account of figures taken by the DVO and amounts of fee paid to architect have remained to be considered for working of difference. Any reasonable reconciliation with above inclusions would take away the justification for the addition so made by the AO. In the circumstances, merely on the basis of the difference in the value as per the valuation report and the actual cost incurred, the addition cannot be made. It....