IN THE HIGH COURT OF KERALA AT ERNAKULAM
ITR.No. 5 of 2006()
1. M/S.UNITY OFFSET, KOLLAM
... Petitioner
Vs
1. COMMISSIONER OF INCOME TAX, TVM.
... Respondent
For Petitioner :SRI.T.M.SREEDHARAN
For Respondent :SRI.P.K.R.MENON,SR.COUNSEL,GOI(TAXES)
The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice HARUN-UL-RASHID
Dated :27/11/2008
O R D E R
C .N. RAMACHANDRAN NAIR &
HARUN-UL-RASHID, JJ.
--------------------------------------------
I.T.R. No. 5 OF 2006
--------------------------------------------
Dated this the 27th day of November, 2008
JUDGMENT
Ramachandran Nair,J.
Heard counsel appearing for the applicant and standing counsel
appearing for the respondent-revenue. Pursuant to search made in the
premises of the assessee, block assessment was made for the period
from 1.4.1985 to 4.1.1996. Addition made pertains to investment in
the building over and above accounted expenses and on account of
sales suppression. The total addition was Rs. 2,73,270/-. The assessee
raised objection that unexplained investment arrived at based on
valuation which is made at CPWD rate is excessive and unacceptable.
It is seen that Tribunal has accepted it and reduced the addition to Rs.
1,73,270/- that is by granting a reduction of Rs. 1 lakh to the assessee.
It is against this order that the assessee raised question of law on
valuation pertaining to addition. Since valuation is essentially an
estimate, we do not find any ground to interfere with the method
2
adopted by the Tribunal for valuation of unexplained investment.
Consequently we answer the question referred in favour of the revenue
and against the assesee.
We dispose of the reference application as above.
A copy of this judgment under the seal of the High Court and
signature of Registrar-General shall be forwarded to the Income Tax
Appellate Tribunal, Cochin Bench.
(C.N.RAMACHANDRAN NAIR)
Judge.
(HARUN-UL-RASHID)
Judge.
kk
3