COMMISSIONER OF INCOME TAX Vs. VIJAYKUMAR D. GUPTA

JUDGEMENT

(1.) These appeals arise out of a common judgment of the Income-tax Appellate Tribunal (hereinafter referred to as "the Tribunal") dated August 23, 2013, for the assessment year 2005-06. Though the dispute is common since they were cross-appeals before the Tribunal, that the assessee's appeal having been allowed and that of the Revenue's having been rejected, the Revenue has preferred these two separate appeals.

(2.) From the record it emerges that the Assessing Officer after making a reference to the DVO for ascertaining the assessee's investment in the house property on the basis of such report added a sum of Rs. 10,77,724 under section 69B of the Act being assessee's unexplained investment.

(3.) The assesses carried the matter in appeal. The Commissioner of Income-tax (Appeals) on facts analysed the case of the assessee again and retained part of the addition but granted partial relief. This order of the Commissioner of Income-tax (Appeals) gave rise to two appeals to the Tribunal. The Tribunal deleted entire addition primarily on the ground that the Assessing Officer could not have made reference to the DVO without reference to the books of account and such reliance on the DVO's books of account was not justified. The Tribunal held and observed as under: