Law:

Section:

Section 145 of the Income-tax Act, 1961 - Method of accounting - Rejection of accounts - Assessment year 1990-91 - During relevant accounting year, appellant-assessee had completed construction of a commercial building and disclosed certain amount as cost of construction - Assessing authority found from books of account maintained by assessee that entries in accounts relating to certain expenditure were not supported by bills or vouchers - Assessing Officer, therefore, referred matter to departmental valuer - On basis of valuation report, Assessing Officer treated difference between amount disclosed as construction cost and valued by departmental valuer as income from undisclosed sources - Whether, on facts, assessing authority was right in referring matter to valuation cell and relying on report submitted by valuation cell - Held, yes FACTS During the accounting period relevant to the assessment year 1990-91, the appellant-assessee had completed the construction of a commercial building. As per the books of account maintained by the assessee, the total cost of construction came to Rs. 18,49,189. The assessing authority referred the matter to the departmental valuer and obtained a valuation report. As per the said valuation, the cost of construction came to Rs. 26,18,700. The Assessing Officer, after deducting certain amount, determined the cost of construction of the building at Rs. 24,56,812 and treated the difference as the income from undisclosed sources. In appeal by the assessee, the Commissioner (Appeals) reduced the said addition. On second appeal, the Tribunal confirmed the order of the Commissioner (Appeals), holding that since all the expenditure incurred by assessee and recorded in the books of account, was not supported by bills or vouchers, the Assessing Officer was justified in rejecting the same and obtaining valuation report from the departmental valuer. On appeal : HELD The remand report obtained by the Tribunal from the assessing authority showed that appellant had maintained regular books of account in respect of the expenditure incurred in the construction of the building. The assessing authority also found that in respect of the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492