COMMISSIONER OF INCOME TAX Vs. M NAGARAJA

JUDGEMENT

(1.) THESE appeals are filed by the revenue being aggrieved by the order dated 21.04.2006 passed by the Income Tax Appellate Tribunal, Bangalore Bench-B in ITA Nos.719 and 793/Bang/2005 confirming the order passed by the Commissioner of Income Tax (Appeals) (CIT (Appeals) for short) dated 21-02-2005.

(2.) THESE appeals are admitted on the following substantial questions of law:

(3.) SRI.E.I.Sanmathi, learned Advocate appearing for the appellants contended that the order passed by the Appellate Tribunal is contrary to law. The judgment relied upon by the assessee is not applicable in view of the amendment made to the Income Tax Act incorporating new Section 142-A of the Income Tax Act in Finance Act No.2/2004 w.e.f. 15-11-1972. The assessee himself admitted that he has spent sum of Rs.1,72,98,255/- for construction of the commercial complex from the assessment year 1998-1999 to 2000-2001, whereas the District Valuation Officer after inspecting the building reported the valuation of the construction of the building at Rs.2,61,54,033/-. The difference amount was brought to tax. Further the assessee has not produced any document to show as to how much expenditure he has incurred for construction of the building. In the absence of the same, the Assessing Officer after getting the report from the District Valuation Officer has assessed value of the building. There is no infirmity in the order passed by the Assessing Authority as well as the CIT (Appeals) and sought for setting aside the order passed by the Appellate Tribunal.