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TMI Blog2013 (7) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... ising the following substantial questions of law: "(i) Whether in the facts and circumstances of the case, the Tribunal was right in directing the Assessing Officer to restrict the addition to Rs.8 lacs as offered by the assessee? (ii) Whether in the facts and circumstances of the case, the Tribunal was right in holding that the CPWD rates cannot be applied to the commercial cum residential complex constructed at Coimbatore on the ground that Coimbatore is a small town? " 2. It is seen from the facts herein that the assessee had constructed a shopping-cum-residential complex at 405, Rangai Gounder Street, Coimbatore, and the construction was completed in the previous year relevant to the assessment year 1998-99. The cost of construction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidential complex and that no wood work like provision of almirahs, doors and windows were required and that no decorative work were required. Since the assessee was an experienced hand in the construction line, a reduction was to be given on account of builder's profit. In the circumstances, the Tribunal accepted the plea of the assessee for an addition of Rs.8 lakhs towards cost of construction returned by it. Thus, the Assessing Officer was directed to make an addition of a sum of Rs.8 lakhs to be distributed in the assessment years 1997-98 and 1998-99. Aggrieved by this, the present appeal has been filed by the revenue, relating to the assessment year 1998-99. 3. Learned Standing Counsel appearing for the Revenue pointed out that while ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not denied by the Revenue that there is a variation between the CPWD rates and the State PWD rates. Considering the geographical location, the availability of work force and the cost of materials, unless there are similarities in the rates under CPWD and the State PWD, we do not think, we can blindly go by CPWD rates for the purpose of arriving at the cost of construction. In the circumstances, while setting aside the order of the Tribunal, we remit back the matter to the Assessing Officer for working out the cost of construction, to be distributed in assessment years 1997-98 and 1998-99 by taking State PWD rates and for passing orders in accordance with law, after giving the assessee an opportunity of hearing. The Tax Case Appeal stands ..... X X X X Extracts X X X X X X X X Extracts X X X X
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