- (1.) VAKALATNAMA filed by Shri Krishna Dev Vyas on behalf of respondent, is taken on record.
(2.) BOTH the appeals have been filed by the Department under Section 260A of the Income Tax Act, 1961 against the consolidate judgement and order dated 22.12.2003 passed by Income Tax Appellate Tribunal, Lucknow in I.T.A. No. 1149 and 1150/Alld/1997.
(3.) ON 06.09.2007 a coordinate Bench has admitted the appeal on the following substantial questions of law : (i) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is correct in law in holding that in absence of seized material in possession of the Department, no addition can be made in block assessment on the basis of the report of the District Valuation Officer? (ii) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is correct in law in holding that in view of the judgement of the Hon'ble Supreme Court in the case of Smt. Amiya Bala Paul Vs. CIT, 2003 262 ITR 407, no reference could be made to the District Valuation Officer? (iii) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is correct in not appreciating the fact that report of the District Valuation Officer can be utilized by the Assessing Officer as evidence being opinion of a technical expert? The brief facts of the case are that on 02.07.1996, a search and seizure operation was conducted at the assessees' business and residential premises. During the course of search, it was found that the assessees have made the substantial investments in the construction of residential house. The Assessing Officer (A.O.) has referred the matter to the Departmental Valuation Officer (DVO) for estimating the cost of the house. The DVO vide its report dated 31.3.1997 has estimated the cost. On the basis of the report, for the difference, the A.O. has made the addition of Rs. 6,04,012/ - in the hands of both the assessees. A sum of Rs. 2,20,033/ - was added in the hands of Dr. V.S. Rajput and remaining amount in the hands of the Dr. (Smt.) Meera Singh. The CIT(A) has sustained the addition. However, the Tribunal has deleted the additions. Being aggrieved, the Department has filed the present appeals.;