Addition based on DVO report without rejecting books of account is bad in law

Puttur City Hospital Pvt. Ltd. Vs ITO (ITAT Bangalore) Bangalore Bench of the Tribunal in the case of M/s. Shetty Constructions v. ACIT has held that rejection of books of account is a precondition for making reference to the DVO. Facts- The assessee is a private limited company and had set up a new hospital. A survey u/s 133A was conducted in the premises of the assessee. During the course of survey proceedings, a copy of the valuation report was found and impounded, wherein the investment in the said hospital building was at Rs.5,13,84,900. However, as per the balance sheet of the assessee f...