M/S ISLAMIC ACADEMY OF EDUCATION vs. ACIT,

The only issue that arises for consideration in all these appeals is whether the AO was justified in making addition u/s 69 of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short][hereinafter referred to as 'the Act' for short] based on to 66/Bang/2014 Page 2 of 3 DVO’s report in respect of cost of construction of buildings. The impugned orders have been passed pursuant to the directions of the Hon’ble CIT u/s 263 dated 23/03/2010 to make addition of difference in cost of construction shown in books of account and the cost of construction as per the DVO report. This issue was not open for consideration before the AO. It is bounden duty of the AO to follow the directions of the CIT in the order u/s 263 and the order passed u/s 263 has attained finality. Therefore, we do not find any reason to interfere with the orders passed by the CIT(A) sustaining the addition.

Reliance placed by the learned counsel for the assessee on the decision of the Hon’ble High Court in the case of S.S.Jyothiprakash vs. Addl.CIT in dated 07/06/2016 is not applicable to the facts of the present case having regard to the fact that in that case, the Hon’ble High Courft felt that no addition u/s 69 can be made without establishing that consideration over and above what is stated in the registered sale deed has flown to the assessee. The facts of the present case are totally different.

In the result, the appeals filed by the assessee are dismissed.