Rajasthan H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that before making a reference to the Valuation Officer for his opinion under s. 133(6) of the IT Act, it was necessary that there is material or evidence to indicate that certain expenses incurred on the construction have not been recorded in the books of the assessee ?

High Court Of Rajasthan : Jaipur Bench

CIT vs. Prem Nath Motors (Rajasthan)(P) Ltd.

Sections 256(2)

Asst. Year 1986-87

Y.R. Meena & K.C. Sharma, JJ.

IT Ref. Appln. No. 4 of 1997

1st April, 2003

Counsel Appeared

Anuroop Singhi, for the Petitioner : Amrit Sharma, for the Respondent

JUDGMENT

BY THE COURT :

Heard learned counsel for the parties.

2. Considering the submissions, the Tribunal is directed to refer the following questions along with the statement of case for the opinion of this Court :

“Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that before making a reference to the Valuation Officer for his opinion under s. 133(6) of the IT Act, it was necessary that there is material or evidence to indicate that certain expenses incurred on the construction have not been recorded in the books of the assessee ?”

“Whether, on the facts and in the circumstances of the case, the Valuation Officer’s report was not sufficient material/evidence for the AO to determine the cost of construction of the property and whether the Tribunal was justified in deleting the addition made by the AO on the basis of the Valuation Officer’s report ?”

The reference be made within 2 months from the date of receipt of certified copy of this order.

The reference application filed under s. 256(2) of the IT Act, 1961, stands disposed of accordingly.

[Citation : 265 ITR 331]