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Section 142A, read with section 69C, of the Income-tax Act, 1961 - Assessment - Estimate by Valuation Officer in certain cases - Assessment year 1998-99 - Whether powers under section 142A extend to estimating amount of unexplained expenditure referred to in section 69C - Held, no - Whether, therefore, Assessing Officer was not justified in exercising powers under section 142A for purpose of getting himself satisfied about cost of construction claimed by assessee as revenue expenditure - Held, yes FACTS The assessee was a construction company. During the previous year, it completed one of its projects and declared profit of said project. The Assessing Officer referred the matter to the Departmental Valuation Officer (DVO) to determine the cost of construction of that project and on the basis of the report of the DVO made certain addition to the income of the assessee. On appeal, the Commissioner (Appeals) confirmed the action of the Assessing Officer. On second appeal, the Tribunal held that section 142A does not deal with the unexplained expenditure under section 69C and, therefore, it was not permissible for the Assessing Officer to refer the matter to the DVO for obtaining the cost of construction. The Tribunal, therefore, deleted the impugned addition. On the revenue's appeal to the High Court : HELD Section 142A(1) enables the Assessing Officer to get the valuation done from the Valuation Officer in certain specific cases. These would be the cases wherein an estimate of the value of any investment referred to in section 69 or section 69B or the value of any bullion, jewellery or other valuable articles referred to in section 69A is required. There is no mention about section 69C. Section 69A deals with unexplained money. Section 69B likewise relates to the amount of investment, etc., not fully disclosed in the books of account. On the other hand, the provision relating to unexplained expenditure is in section 69C. [Para 9] In the instant case, the Assessing Officer had doubted the expenditure incurred by the assessee on the project. Therefore, he referred the matter to the DVO for the purpose of determining the cost of construction of the project. However,…

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