9911796707
TMI Blog1979 (3) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... construction. The ITO however, did not accept the assessee's claim. He referred the matter of the value of the cost of construction to the departmental valuation cell. The Departmental valuer estimated the cost of construction at Rs. 2,49,000. The ITO held that the difference between the sum of Rs. 2,49,000 (estimate of the cost by the departmental valuer) and Rs. 1,41,033 (as per the assessee's claim) represented the undisclosed Income of the assessee for the two asst. yr. viz. 1973-74, and 1974-75 (for which the accounting years ended on 31st March, 1973 and 31st March, 1974) during which the construction was spread over. The ITO apportioned the above difference of Rs. 1,08,000 in round figures in the same proportion to the cost of constr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Madras High Court in CIT vs. Dr. V.K. Bhaskaran Nair and Another(1) would support his stand. He, therefore, strongly urged that the cost of construction admitted by the assessee should be accepted. 4. On behalf of the Revenue, reliance was placed on the order of the AAC. 5. We have considered the rival submissions. It is common ground that the assessee had put up the building in question during the period Jan., 1971 to Oct., 1973. It is also common ground that a large part of the work was done during the first year relevant to the asst. yr. 1973-74, and the remaining work was done during the accounting year relevant to the assessment year under appeal. The assessee had claimed that he has maintained books of accounts showing the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved valuer. The assessee has drawn our attention to the letters filed by him before the ITO raising objection to the proposed addition to the cost of construction admitted by him. To the said letter the assessee had appended an analysis of the cost of construction said to be based on the accepted figures of the Public Works Department for the year 1972 and 1973 for the various floors of a first class building. We find that the cost of construction shown by the assessee compared favourably with the cost of construction worked out on the basis of the Public Works Department's rates. Further, the AAC has found that as per the copy of the Government Notification under the Madras Buildings (Lease and Rent Control) Rules, dt. 26th July, 1969, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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