CIT Vs. VINDHYAVASINI DEVI

JUDGEMENT

(1.) HEARD Shri Dhananjay Awasthi, learned counsel for the appellant and Shri S.D.Singh, learned counsel for the respondent. This appeal under section 260 -A of the Income Tax Act has been filed against the order dated 29.2.2008 passed by the Income Tax Appellate Tribunal in I.T.A No. 408/LUC/2007 for assessment year 1998 -1999.

(2.) THE Assessing Officer by assessment order dated 31.3.2006 has made addition of Rs.12,91,432/ - in the income of the assessee as an unexplained investment. The assessee had purchased a immovable property for payment of consideration of Rs.5 lacs as was recorded in the sale deed. The Assessing Officer obtained the report from DVO who had estimated the value of the property at Rs.17,91,432/ -. After receiving the valuation report , the Assessing Officer observed that the difference of the value is unexplained investment and no satisfactory explanation having been given by the assessee. An appeal was filed by the assessee to the CIT(A) who vide order dated 19.3.2007 has partly allowed the appeal. In so far as the addition of Rs.12,91,432/ -, the appellate authority has held in paragraph 13 which is as follows:

(3.) THE learned counsel for the Department submitted that the said amount was unexplained investment within the meaning of Section 69 of the Income Tax Act, hence has rightly been added in the income of the assessee. He submits that the fact that the DVO has estimated the value of the property at Rs.17,91,432/ -. It is clearly indicated that the property was owned by the assessee and the difference was liable to be added as unexplained investment.