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TMI Blog1979 (1) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... 73. Though the assessee originally valued this building at Rs. 1,79,169, yet in conformity with the assessee's valuer's report, he offered for assessment treating the value of the construction at Rs. 2,15,600. The ITO referred the valuation of the property to the departmental valuer who fixed the cost of construction at Rs. 2,57,500. As against such valuation an objection was raised and the departmental valuer had revised the valuation of the construction as Rs. 2,47,400. The ITO on the ground that the valuation as given by the assessee was unacceptable estimated the total cost of construction at Rs. 2,77,681 and made an addition of Rs. 61,881, treating the subsequent adoption of by the assessee of the value of construction at Rs. 2,15,800. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ission the assessee is entitled to a relief of Rs. 10,113. However, the AAC, taking an over-all picture of the cost of construction had given further relief to the extent of Rs. 18,642. The only question is whether the assessee is entitled to such relief. 5. The learned Departmental Representative contended before us that as per s.55A of the IT Act 1961,the AAC should have given an opportunity of being heard to the departmental valuer before reducing the cost of construction determined by him. On the other hand, the learned counsel for the assessee urged before us that s.55A of the IT Act is not applicable inasmuch as we are not concerned in this case of ascertaining the fair market value of the capital asset but we are concerned only wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n as it is difficult to get sand and jelly in Madras than in Vellore and that the expenditure on labour is lesser in Vellore than in Madras. The opinion of the P.W.D. contractor relied on by the AAC is only a practical knowledge of the situation of the cost of construction in Vellore when compared to the cost of such construction in Madras. So, there is noting wrong in the AAC in taking such particulars in reducing the cost of the lodge at Vellore. 7. The learned counsel for the assessee pointed out that the actual plinth-area of the construction is 683 sq. metres as against 698 sq. metres taken by the departmental valuer. The AAC had treated the plinth area at 698 sq. metres and as the difference is only small and as the assessee's value ..... X X X X Extracts X X X X X X X X Extracts X X X X
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