Kay Flames P. Ltd. v. CIT (2024)467 ITR 520 (All)(HC)

S. 254(1) : Appellate Tribunal-Duties-Cross objection-Failure to consider cross objections-Matter remanded to Tribunal-Valuation of assets-Books of account not rejected-Assessing Officer Cannot Refer To Department Valuation Officer Without Rejecting Books Of Account. [S.142A(1), 143(3), 253, 260A

Held, that the assessee had specifically raised the issue that if reference to the Department Valuation Officer, without rejecting the books of account by the Assessing Officer was not permissible, whether the addition to the income of the assessee could have been made based on the report of the valuer in the cross-objection filed before the Tribunal. The Tribunal had erred in refusing to consider the grounds raised in the cross-objection on the strength of section 142A.Matter remanded to Tribunal.  Court also held   as regards valuation of asset, without rejecting the books of account the  Assessing Officer cannot refer to Department Valuation Officer. Followed Sargam Cinema v.CIT (2010) 328 ITR 513(SC) ; (2010) 15 SCC 546      (AY. 1997-98)