IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE HARUN-UL-RASHID THURSDAY, THE 27TH NOVEMBER 2008 / 6TH AGRAHAYANA 1930 ITR.No. 5 of 2006() ------------------- RA.196/COCH/1998 IN IT (S & S) A 13/COCHIN/1997 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPLICANT(S): -------------- M/S. UNITY OFFSET, KOLLAM. BY ADV. SRI.T.M.SREEDHARAN SRI.V.P.NARAYANAN RESPONDENT(S): --------------- COMMISSIONER OF INCOME TAX, TRIVANDRUM. ADV. SRI.P.K.R.MENON,SR.COUNSEL,GOI(TAXES) SRI.GEORGE K. GEORGE, SC FOR IT THIS TAX REFERENCE HAVING BEEN FINALLY HEARD ON 27.11.2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 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