SHANTILAL ASHOK KUMAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application under s. 256 (2) of the IT Act, 1961 (hereinafter referred to as ` the Act')

(2.) THE material facts giving rise to this application, briefly, are as follows : THE assessee is assessed in the status of an AOP and the assessment year in question is 1974-75. In the asst. yr. 1973-74, the assessee had purchased a plot of land for Rs. 10,523 and constructed a house thereon. According to the assessee, the cost of construction was Rs. 1,09,700. THE ITO got the house valued by the Departmental Valuer, who estimated its value at Rs. 1,71,310. THE ITO accepted that cost of the house estimated by the Departmental Valuer and he accordingly made an addition of Rs. 61,610 on account of income from undisclosed sources. On appeal, the AAC held that the assessee had maintained accounts and the ITO had not brought any material on record to show way why these accounts were not acceptable. THE AAC, therefore, deleted the entire addition made by the ITO. Aggrieved by that order, the Department preferred an appeal. THE Tribunal observed as follows :

(3.) AS regards reliance on the report of the Departmental Valuer, we may usefully refer to the following observations of the Tribunal in its order rejecting the application under s. 256 (1) of the Act :