COMMISSIONER OF INCOME TAX Vs. TRILOK CHAND KARTA

JUDGEMENT

(1.) THIS is a Revenue's appeal under s. 260A of the IT Act, 1961 (for short "the Act"), against order dt. 23rd May, 2002, of the Income-tax Appellate Tribunal, Chandigarh Bench (for short "the Tribunal"). The order of the Tribunal relates to four assessment years, viz., 1988-89 to 1991-92, involving a common question about the investment in the construction of a commercial complex in the four years. The present appeal relates to the asst. yr. 1989-90 only. It is not clear as to whether the said order qua the other three assessment years has been challenged or not.

(2.) THE assessee had constructed a commercial complex during the relevant four years and had shown an investment of Rs. 6,42,929. During the course of proceedings pertaining to the asst. yr. 1989-90, the AO referred the matter to the District Valuation Officer (for short "the DVO"), for estimating the cost of construction of the said building. The DVO submitted his report estimating the cost of construction at Rs. 12,67,403 and bifurcated the investment yearwise in the relevant four years. The AO confronted the assessee with the valuation report of the DVO and asked him to explain the difference in investment as under :

(3.) THE assessee filed appeals before the CIT(A), who deleted the additions by holding that in view of the evidence led by the assessee and explanation furnished by him, the DVO's report could not Cost of construction Assessment year As per DVO As per assessee Difference