9911796707
TMI Blog2013 (12) TMI 1200X X X X Extracts X X X X X X X X Extracts X X X X ..... by its Directors - Held that:- The Tribunal found the allowance for self supervision at 10% to be justified on the basis of several decisions of the Tribunal. On the architect's fees as added by DVO at 1% of the cost, the Tribunal did not find any error in the order of CIT (A) in directing the AO to substitute the estimated cost on account of architect fee with the actual cost incurred at about 2% - The Tribunal found that the findings of CIT (A) on the expenses or constructions such as supervision charges, bank commission, plans approval, expenditure, expenses for Form 32 for purchase of material, municipal taxes and fertiliser were justified - The CIT (A) had worked out the difference between the estimated cost in terms of DVO's repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich include salary of the directors and staff etc form part of the cost of construction.? (4) Whether on the facts and in the circumstances on the case the Tribunal is justified holding that the architect fee be added as shown by the assessee to the cost of construction instead of architect fee as added by DVO @ 1% of the cost. (5) Whether on the facts and in the circumstances on the case the Tribunal is justified in holding that self supervision charges be deducted @ 1% instead of 5% deducted by the DVO in his valuation report.?" The appeal arises out of regular assessment proceedings in which the assessee-a builder engaged in the business of constructing the residential flats, was subjected to assessment. During the year under co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deals with cost of construction according to AS-7. The assessee debits the cost of construction relating to any specific project in a separate construction account of that project. When any flat(s), or block of flats is complete, the cost is transferred from construction account to trading account. All other expenses, relating to office, like audit fees, general office expenses, depreciation on office equipments etc. are debited to profit loss account of the relevant year. The closing balance of the construction account at the end of any accounting year is treated as work-in-progress. When any flat (s) is sold, the cost of construction of that flat(s) is deducted from the sales consideration and profit is calculated. The DVO advised ded ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
