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TMI Blog2015 (1) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... of square yards, it would not only be nine times that figure, but also subject to addition of cost of the land, be it the one, on which the building was constructed or the proportionate open land. When such is the devastating effect of the treating of the figure vis-a-vis square yard instead of square feet, it was basic and fundamental duty of the Commissioner to have shared that information with the respondent and to take his view point in this behalf, into account - However, he straightaway proceeded to pass the order - the sole basis for the Commissioner to revise the order passed by the AO was the information said to have been received by him from the Sub Registrar, the Tribunal asked the departmental representative to furnish a copy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 15.01.1997, be not set aside. He opined that the market value of the property was taken as ₹ 600/- per square yard by the Assessing Officer, whereas the information furnished by the Sub-Registrar discloses that it is only ₹ 40/- per square yard. The respondent submitted an explanation stating that the certificate issued by the Sub-Registrar is to the effect that the value of the property is ₹ 40/- per square foot for the residential area and ₹ 70/- per square foot for the commercial area and not ₹ 40/- per square yard. Not satisfied with the explanation offered by the respondent, the jurisdictional Commissioner passed an order dated 19.03.1999 revising the taxable income on the basis that the market value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 2,000/- per square yard and it fetched ₹ 10,00,000/-. b. The owner of the plot incurred expenditure of ₹ 1,00,000/- towards advertisement, documentation and legal opinion. c. The property was purchased in the year 1985-86 for consideration of ₹ 500/- per square yard. d. Over the period, a sum of ₹ 2,00,000/- was spent for construction of compound wall, watchman shed and providing electricity. A sum of ₹ 1,00,000/- incurred for advertisement etc., comes under clause (i) of Section 48 of the Act. The amount representing consideration for purchase, namely, ₹ 2,50,000/- and the cost of construction of compound wall of ₹ 1,00,000/-, aggregating to ₹ 3,50,000/- would come under cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letter, is per square yard of land and he mistakenly mentioned it as square foot of constructed area. The difference was bound to be phenomenal. If ₹ 40/- is the cost in respect of square feet of constructed area, in terms of square yards, it would not only be nine times that figure, but also subject to addition of cost of the land, be it the one, on which the building was constructed or the proportionate open land. When such is the devastating effect of the treating of the figure vis--vis square yard in stead of square feet, it was basic and fundamental duty of the Commissioner to have shared that information with the respondent and to take his view point in this behalf, into account. However, he straightaway proceeded to pass the or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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