Case Law Details
Section 142A is attracted, inter alia, where the assessee is found to have made investment outside the books of accounts or where any such investment made by him is not fully disclosed in the books of account. The condition precedent for making the reference by invoking the provisions of Section 142A thus is that there should be something on record to show that the assessee in first place has made such investment outside the books or the investment so made by him is not fully disclosed in the books of account and once this condition is satisfied, the quantum of such investment made can be ascertained by the Assessing Officer by making reference u/s 142A in order to make the addition u/s 69 or 69B, whichever is applicable. In the present case, the relevant property was purchased by the assessee during the year under consideration for Rs.15 lakhs and the amount of the said consideration was paid out of its disclosed sources as accepted even by the Assessing Officer in the reassessment. A perusal of the assessment order, however, shows that there was no reference whatsoever made by the Assessing Officer to any material/evidence/information on the basis of which it could be said that the said consideration shown by the assessee was understated and that anything above what was disclosed by the assessee had actually been paid as consideration. The condition precedent for making a reference to the DVO by invoking the provisions of Section 142A thus was not satisfied in the present case and neither the said reference nor the addition made on the basis of report obtained from the DVO in response to the said reference, in our opinion, was sustainable in law as rightly held by the learned CIT(A). In the case of Subhash Chand Chopra vs. ACIT-92 TT J 1087, this Bench of the Tribunal has held that no material or evidence having been recovered during the course of search showing investment in construction, the AO was not competent to make a reference to the DVO u/s 142A and to make addition on that basis.
INCOME TAX APPELLATE TRIBUNAL, DELHI
ITA no.4460/Del/2010 – Assessment year: 2006-07
DCIT V/s. Mr. Abhinav Kumar Mittal
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Good Judgement .
CA. Subhash Chandra podder, FCA
Kolkata
07/08/2012