2025 (6) TMI 884

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....he Act') dated 22.09.2021 by the Assessing Officer, DCIT, Circle, Dehradun (hereinafter referred to as 'ld. AO'). 2. The only effective issue to be decided in this appeal is as to whether the ld CIT(A) was justified in confirming the action of the ld AO in making addition on account of unexplained investment in hospital building in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the material available on record. The assessee is a labour supply contractor and the return for AY 2013-14 was filed on 28.09.2013 declaring total income of Rs. 8,97,592/-. On 05.12.2013 a survey u/s 133A of the Act of the Act was conducted after which the assessee filed revised return on 24.02.2014 showing total....

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....3/ sq mtr in estimating the cost of building. Accordingly, the rate adopted by the ld DVO was objected to by the assessee as very excessive. Further, the assessee had not been given the benefit of self supervision charges @7.5% of the value which is liable for reduction from the determined value. The ld AO observed that out of surrendered amount, the only Rs. 70,60,117/- pertains to the hospital building and accordingly added the remaining sum of Rs. 3,37,50,183 (408,10,300-70,60,117) as unexplained investment u/s 69 of the Act. This matter in the first round travelled up to the level of this Tribunal wherein, this Tribunal in ITA No. 5471/Del/2017 dated 15.01.2020 restored this issue back to the file of the ld AO in its entirety for de nov....

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....e assessee, the assessee surrendered a sum of Rs. 70,60,117/- and offered a sum towards investment in hospital building in the revised return filed on 24.02.2014. Further, the assessee even justified with supporting bills, vouchers and documentary evidence as to how the surrendered made by him in the sum of Rs. 70,60,117/- towards investment in the hospital building to be justified. In this circumstance, no fault could be attributed on the action of the ld AO to make a reference to the ld DVO for determining the fair market value of cost of construction u/s 142A of the Act. 5. As stated supra the very basis of reference to valuation officer cannot be objected to in the instant case. However, we are in agreement with the arguments advanced ....