Law:

Section:

Section 145 read with section 69, of the Income-tax Act, 1961 - Method of accounting - Estimation of income - Assessee had constructed two properties and she had shown total cost of construction in respect of both properties in a sum of Rs. 24.6 lakhs - Assessing Officer adopted valuation of approved valuer whose report was based on State PWD rates in a sum of Rs. 3,079 per sq. mt. - He also disallowed receipt of certain gifts as well as advance receipts for letting out property - On appeal, Commissioner (Appeals) upheld order of Assessing Officer; however, he restricted disallowance of advance amount to Rs. 1,70,000 - On further appeal, Tribunal upheld order of Assessing Officer - Whether Tribunal was justified in adopting valuation report of approved valuer whose report was based on State PWD rate - Held, yes - Whether further disallowance of advance receipts to an extent of Rs. 1,70,000 was also in order - Held, yes FACTS The assessee had constructed two properties and she had shown the total cost of construction in respect of both the properties in a sum of Rs. 24.6 lakhs. The Assessing Officer adopted the valuation of the approved valuer whose report was based on State PWD rates in a sum of Rs. 3,079 per sq. mt. He also disallowed the receipt of certain gifts as well as advance receipts for letting out the property. On appeal, the Commissioner (Appeals) upheld the order of the Assessing Officer, however, he restricted disallowance of advance amount to Rs. 1,70,000. On further appeal, the Tribunal held that the valuation made by the Assessing Officer, based on the State PWD rates at the rate of Rs. 3,079 per sq. mt. was justified and also held that the disallowance of advance receipts to an extent of Rs. 1,70,000 as held by the Commissioner (Appeals) was also in order. In the instant appeal, the revenue contended that the valuation made by the Departmental Valuer was to be preferred as against the valuation made by the Assessing Officer based on the State PWD rates. HELD There was no good reason to dislodge the finding of the Tribunal for the purpose of accepting the valuation, as made by the approved assessor whose report was submitted by the assessee…

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