2002 (8) TMI 14 - HC - Income Tax

Cost of construction - Whether on the facts and in the circumstances of the case the Appellate Tribunal was correct in applying Rajasthan PWD rates for working out the cost of construction of house property for income-tax purpose instead of CPWD rates? - What should be the value of the construction is basically a question of fact and that depends upon the material used the location and the quality of construction. Therefore straightaway applying the PWD rate or CPWD rate is not justified in case of each house. What should be the cost of construction the Tribunal has applied the rate of PWD that is on the facts and circumstances of this case which is part of the finding of fact No interference is called for.

Summary

The High Court of Rajasthan ruled in favor of the assessee in a case involving the valuation of a house property for income tax purposes. The Tribunal's decision to use Rajasthan PWD rates instead of CPWD rates was upheld based on the specific circumstances of the case. The Court concluded that the valuation of construction costs depends on various factors and upheld the Tribunal's decision.