COMMISSIONER OF INCOME TAX Vs. ROHTAS PROJECTS LTD

JUDGEMENT

(1.) All the three appeals have been filed by the Department under Section 260A of the Income Tax Act, 1961 against the consolidated judgment and order dated 14.07.2010, passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A. Nos. 563(Alld)/2000 & 151-152/Luc/2003, for the assessment years 1995-96; 1996-97; and 1997-98 respectively.

(2.) The brief facts of the case are that the assessee is a Company involved in the construction and selling of commercial/residential buildings at Lucknow. While passing the assessment order, under Section 143(3) of the Act, the AO opined that the investment made in the construction of the property at Khurram Nagar was not properly accounted for by the assessee. So, he referred the matter to the DVO, who vide his report dated 28.10.1997 has given the year wise investment in the property. On the basis of the report submitted by the DVO, the AO has made the addition, which was deleted by the first appellate authority. The Tribunal has upholds the same. Still not being satisfied, the Department has filed the present appeal.

(3.) With this background, heard Sri R.K. Upadhyay, learned standing counsel for the Department, who has justified the order passed by the AO. He submits that the addition made on the basis of the DVO report is valid and justifiable as per the ratio laid down in the following cases :-