COMMISSIONER OF INCOME TAX Vs. KRISHAN LAL DUA

JUDGEMENT

(1.) WHETHER the Income -tax Appellate Tribunal (Delhi Bench "SMC -I", Delhi) (for short, "the Tribunal") was justified in deleting the additions made by the AO on account of difference between the cost of construction shown by the assessee and the one assessed by the DVO is the question of which determination has been sought by the appellant in this appeal filed under s. 260A of the IT Act, 1961 (for short, "the Act").

(2.) FOR the asst. yr. 1993 -94, the respondent filed a return declaring an income of Rs. 27,660. By an order dt. 31st Revenue by filing appeal, etc.

(3.) DURING the course of assessment proceedings for the asst. yr. 1994 -95, the AO noted that the assessee had constructed a building on plot No. 20, Veer Savarkar Marg, Shakurpur, Delhi, in the financial years 1992 -93 and 1993 - 94 relevant to the asst. yrs. 1993 -94 and 1994 -95 at a cost of Rs. 9,65,250. He did not feel convinced with the value projected by the respondent and referred the matter to the Valuation Officer, New Delhi, for determining the cost of construction. The latter valued the cost of the building at Rs. 12,53,900. After considering the objections filed by the respondent, the AO determined the difference in the cost of construction at Rs. 2,39,243. He also observed that 69.38 per cent construction was made in the financial year 1992 -93 (asst. yr. 1993 -94) and the balance was constructed in the financial year 1993 -94 (asst. yr. 1994 -95). Accordingly, he determined the amount of difference in the cost of construction for the asst. yr. 1993 -94 at Rs. 1,65,984 and initiated proceedings under s. 147 of the Act. In response to yr. 1993 -94 at Rs. 1,99,881 which included the alleged unexplained investment in the property amounting to Rs. 1,65,984. The Commissioner of Income -tax (Appeals), Rohtak [for short, "the CIT(A)"], allowed the appeal filed by the respondent and deleted the addition of Rs. 1,65,984 made by the AO. However, he maintained some other additions made by the AO.