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TMI Blog1979 (2) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... he construction of house property and also the total expenditure incurred by her for the construction. The total cost of construction as per the approved valuer's report showing the total cost at Rs. 80,357 was filed before the ITO. The source of construction was said to be out of withdrawals from Pahwa Trading Co. amounting Rs. 76,880 plus a loan of Rs. 10,000 from Shri Kishorilal Pahwa and the rental income of Rs. 4,400 totalling in all Rs. 91,280. Except for the rental income of Rs. 4,400 the balance sum was accepted by the ITO. The ITO, however, estimated the cost of construction at Rs. 1,07,738 and the balance of Rs. 20,858 was treated as income of the deceased from other sources. 3. Against this order of the ITO the assessee went up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of reassessment proceedings it was stated by one of the legal heirs that for construction of this building the deceased had used materials of the old house which stood at the spot. The construction of house was started some that in the financial year 1963-64. But this was not accepted by the ITO. The ITO had stated in his order that the assessee did not produce any evidence regarding the starting of the construction from the year 1963-64. The legal heirs had only filed the copy of account of the deceased with Pahwa Trading Co. showing that the deceased had started withdrawing amount from her account appearing in the books of Pahwa Trading Co. from the year 1963-64. According to the ITO mere withdrawal of the money from the firm did no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pointed by the appellant it was 1963-64. It is not known as to how the departmental valuer had stated that the year of construction was 1967-68. On the other hand, the year of construction stated by the approved valuer of the assessee was according to the statement of the assessee which was supported by the yearly withdrawal made by the deceased from the books of Pahwa Trading Co. According to the ITO mere withdrawal was not sufficient for ascertaining the year in which the construction was started. We are unable to follow the logic of this assumption of the ITO. We do not think that the assessee withdrew such huge amount of Rs. 76,880 just for the pleasure of keeping it with her and depriving herself the income from interest which she had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime and an adjournment was requested vide his letter dt. 22nd Oct., 1974. This letter was returned to the sender undelivered. The legal heir again sent this letter to the Valuation Officer through the ITO, Raigarh on 30th Oct., 1974. Thereafter, the Valuation Officer intimated the legal heir to file his objection on 26th Dec., 1974. In response to this letter Shri Surendra Kumar Pahwa submitted his objection dt. 14th Dec., 1974 to the Valuation Officer. This was received by the Valuation Officer on 26th Dec., 1974. In support of his contention Shri D.C. Bhamore has furnished us the true copies of the correspondence between the legal heir and the Valuation Officer. We have perused these evidences and it is clear that the statement of the Val ..... X X X X Extracts X X X X X X X X Extracts X X X X
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