Section 69B, read with section 142A, of the Income-tax Act, 1961 - Undisclosed investments

T : Where there was minor difference in valuation report of DVO and assessee's valuer regarding cost of construction, addition made as undisclosed investment could not be sustained
IT : Addition made on account of undisclosed investment in purchase of land solely on basis of DVO's report was not proper
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[2014] 52 taxmann.com 54 (Gujarat)
HIGH COURT OF GUJARAT
Commissioner of Income-tax-I
v.
Jayendra N. Shah*
AKIL KURESHI AND MS. SONIA GOKANI, JJ.
TAX APPEAL NOS. 27 TO 29 OF 2014†
JANUARY  17, 2014
I- Section 69B, read with section 142A, of the Income-tax Act, 1961 - Undisclosed investments (Cost of construction) - Assessment years 2008-09 to 2010-11 - Following search proceedings, Assessing Officer found that there was undisclosed investment in cost of construction of bunglow shown by assessee - He accordingly referred matter to DVO and based on report of DVO made addition to income of assessee - Commissioner (Appeals) having found that there was hardly any substantial difference between valuation report of DVO and assessee's valuer, deleted addition - Whether there was no infirmity in impugned order - Held, yes [Para 8] [In favour of assessee]
II- Section 69B of the Income-tax Act, 1961 - Undisclosed investments (Investment in immovable property) - Assessment years 2008-09 to 2010-11 - Assessing Officer made addition on account of undisclosed investment in purchase of land - Whether since addition was made merely on basis of DVO's report without there being any other material, same was to be deleted - Held, yes [Para 9] [In favour of assessee]
K.M. Parikh, Advocate for the Appellant.