1980 (4) TMI 137

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....ost of construction of property. In view of the Commissioner for making assessment properly the ITO must first give a finding regarding the reliability of the books of account maintained by the assessee for the construction of the properly. 3. The assessee furnished details to the ITO in respect of cost of construction amounting to Rs. 1,90,443. The property was constructed between 29th April, 71 to 15th Feb., 75. The ITO got this property valued in the wealth-tax proceedings. The ITO made certain additions in the asst. yrs. 1972-73 and 1975-76 with which we are not concerned in the appeals. In the asst. yrs. 1973-74 and 1974-75 the ITO made additions of Rs. 65,885 and Rs. 51,102 respectively on the ground that the assessee spent income f....

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....ed by bills and vouchers, and the payment having been made for the same by cheques, there was no reason or scope for rejecting the said material and data produced and relied on by the assessee. 5. Shri J.P. Shah the ld. Advocate for the assessee submitted that no prima facie case was made out for the view taken by the learned Commr. that ITO must first give a finding regarding reliability of the books of accounts maintained by the assessee for the construction of property. There is considerable force in the submission of Shri Shah. The assessee having furnished all details including particulars which are at page 80 of the compilation filed on behalf of the assessee and the ITO having brought no material to show that the books of account m....

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....appeal. In that appeal the decisions of the Madras High Court in R. Subramanian vs. CIT(28) ITR 352 was referred to. For reasons stated in the said order dt. 14th Sep., 76 we direct the ITO to delete the addition of Rs. 26,437 from the total income of the assessee. 9. Last ground of appeal in the appeal for the asst. yr. 1973-74 is that the Commr. Should have considered the ground of appeal for addition of the Rs. 950 and Rs. 9,000 as income from undisclosed sources looking to the assessment evidence and facts furnished. There was cash credit of Rs. 958 in the account of the assessee in the books of the firm in which he was a partner. The contention of the assessee before the ITO was that the sum represented part of withdrawals from the v....