Case Law Details
Punjab & Haryana High Court held In the case of CIT vs. M/s Freedom Board & Paper Mills that it is not open to the AO to refer the case to DVO without rejecting books of accounts on the basis of rejection of the books of account on some legal or justified basis. So Reopening based on DVO report not justified if books of accounts were not rejected first on the basis of some legal and jusitifed reasoning.
Facts of the Case
During assessment for the year 2007-08, it was noticed that the assessee had been raising construction of the factory building from the year 2003-04 to the year 2008-09. The matter was referred to the valuation cell (DVO) by the AO and on account of the difference of Rs. 4,12,136/- in the construction of the factory building, notice under Section 148 was issued on 23.03.2011, by coming to the conclusion that the income had escaped assessment. In the appeal filed by the assessee before the CIT, the plea taken was that the complete set of account books and the vouchers had been produced and no discrepancy was pointed out in the same. The CIT however reject the appeal.
Contention of the Assessee
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