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TMI Blog2014 (8) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... which is prevalent at distant places and metropolitan cities like Delhi - the authorities below committed serious error, thus, the matter remitted back to the AO to apply the PWD rates at Virudhunagar District in the year 1998-99 with regard to the cost of construction of the assessee's house, so as to ultimately find out what could be the deemed income u/s 69B for the purpose of assessment –Decided in favour of assessee. - Tax Case (Appeal). No.2300 of 2006 - - - Dated:- 3-10-2012 - Chitra Venkataraman And K. Ravichandrabaabu,JJ. For the Appellant : Mr. Devanathan For the Respondent : Mr. M. Swaminathan Standing Counsel for Income Tax Department JUDGMENT (Judgment of the Court was made by Chitra Venkataraman ,J) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, Central Excise at Virudhunagar were constructed with the CPWD rates ; thus, CPWD rates would apply to the assessee's case. In the process of arriving at the cost of construction, the Assessing Officer took into account the vouchers to the extent of ₹ 2,46,123/- and 2% for Engineer fees and licence fees and after giving deduction to this, the cost of construction was arrived at ₹ 14,22,588/-. Noting the admitted cost of the construction at ₹ 8,94,868/-, further sum of ₹ 5,27,720/- was assessed as deemed income from other sources. 4. Aggrieved by the same, the assessee went on appeal before the Commissioner of Income Tax (Appeals), who pointed out that the construction done by the assessee was that of a doub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d there are no grounds to reject the cost of construction by the assessee. 7. It is seen from the narration of the facts that evidently, except for the bare accounts maintained, there are no materials in the form of vouchers, to cross check the quantum of materials used in the construction. In the absence of basic records with regard to the extent of materials, the materials purchased and consumed and the accounts thereby incomplete, the Assessing Officer referred the valuation to the Valuation Officer. As is evident from the reading of assessment order, the Departmental Valuation Officer adopted CPWD rates, which were the rates prevalent in Delhi and other cities for working out the cost of construction of the building and the assessee& ..... X X X X Extracts X X X X X X X X Extracts X X X X
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