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TMI Blog2017 (7) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... e order, the assessee applied for certified copy of the impugned order to file three separate appeals before the tribunal. He has submitted that the said order was received by the assessee on 10.09.2015 through post and thereafter the assessee applied for certified copy of the respective orders passed by the CIT(A) as well as by the Assessing Officer. It took sometime for them to make available the certified copies and therefore the assessee could not file these appeals within a period of limitation and there was a delay of 43 days in filing these appeals. The ld. AR has submitted the delay in filing the appeals is neither deliberate nor willful but it was due to the reasons beyond control of the assessee. Hence he has pleaded that the delay of 43 days in filing of the appeal may be condoned. 3. On the other hand the ld. DR has vehemently opposed the condonation of delay and submitted that the assessee cannot take plea of obtaining the certified copies of the order when the original copy of the order was supplied to the assessee. 4. Having considered the rival submissions as well as relevant material on record, it is noted that the assessee has explained the reasons for the delay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the date of hearing, he appellant humbly prays that this Hon'ble Tribunal be pleased to allow this appeal and to render justice to the appellant. 6. Ground No. 1 is general in nature and does not require any specific adjudication. 7. Ground No. 2 is regarding the addition on an account of investment in house construction. Assessee was gifted the property by his father vide deed dated 19.05.2010. The Assessing Officer noted that the house is a three storeyed house with a lift on the northern side which connects all three floors. The AO in the assessment proceedings referred the valuation of the house property to District Valuation Officer(DVO). The DVO valued cost of the construction of the building at Rs. 1,40,72,700/-. The AO made addition of Rs. 33,93,325 for the assessment year 2011-12 based on the valuation of the DVO. The assessee challenged the action of the Assessing Officer before the CIT(A). The CIT(A) after considering the sources explained by the assessee has reduced the addition to Rs. 20,40,000/- as against 33,93,325/- made by the Assessing Officer. 8. Before the tribunal the ld. AR of the assessee has submitted that the DVO has valued the cost of constru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... situated in the state PWD jurisdiction then the state PWD rates should be applied to ascertain the cost of construction instead of CPWD rates. Hon'ble Rajasthan High Court in case of CIT Vs Dinesh Talwar 265 ITR 344(Raj) has affirmed the decision of the tribunal directing the AO to apply state PWD rate while computing the cost of construction of the building. Similar view has been taken by the Hon'ble Madras High Court in case of CIT Vs K. Jayakumar(supra). Thus when the property in question comes under the state PWD jurisdiction then the state PWD rates has to be applied for the purpose of computing the cost of construction on estimate basis. The DVO's valuation of cost of construction is only an estimated valuation based on CPWD rates. Therefore the AO is directed to apply the state PWD rates for estimating the cost of construction of the house in question. 11. As regards the self supervision charges rebate rates is concerned, it is noted that the tribunal has taken a view that the rebate on account of self supervision of construction of house should be given at 10 to 15% of the cost of construction. The AO has given 6% rebate on account of self supervision. However, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this amount of interest is already offered in the return of income as part of the interest income of Rs. 72,642/- This fact has been duly recorded by the AO in para 5.3. Despite that the AO has not accepted the explanation of the assessee. We note that as per schedule 4 of profit & loss account the assessee has shown the interest from banks at Rs. 72,642/- and further the interest of NSC at Rs. 2,641/-. Therefore, prima facie it appears that the interest received from the bank has been duly reflected as part of the interest income of Rs. 72,642/-. However, since the CIT(A) has not adjudicated this issue therefore, for the limited purpose of verification of this fact we set aside this issue to the record of AO to verify the record and particularly schedule 4 & 5 of financial statement of the assessee and then decide the issue after giving an opportunity of hearing to the assessee. 15. Ground No. 4 is regarding disallowance of Rs. 24,987/- being 30% of the administrative expenses relating to the professional income. The AO noted that the assessee has admitted professional receipts of Rs. 5,72,356/- against which expenditure like printing & stationery, telephone charges, vehicle main ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % of the professional receipts. Once the professional income and gross receipts are not in dispute then it is an impossible proposition that the professional income should be earned without any corresponding expenses. Considering the quantum of the expenses which is less than 15% of the gross receipts we find that the adhoc disallowance of 30% is exorbitant and is an extreme view. Accordingly, considering the facts and circumstances of the case when the claim of the assessee is less than 15% of the gross professional receipts we restrict the disallowance for want of supporting evidence to 10% of the expenses instead of 30%. Accordingly, we modify the orders of the authorities below and direct the AO to restrict the disallowance at 10%. 18. For the assessment year 2012-13, the assessee has raised the following revised grounds. 1. The order of the learned CIT (A) is opposed to law, facts and evidence in this case. 2. The learned CIT (A) erred in law in sustaining addition to the tune of Rs. 6,11,823/- as unexplained investment in house construction. 3. The learned CIT (A) erred in law in sustaining the disallowance of Rs. 89,655/- estimated at 30% of the administrative related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant to put forth his case and this has resulted in violation of principles of natural justice. 7. The learned CIT (A) erred in law in ignoring the details furnised by the appellant regarding sources of investment in house construction. 8. The learned CIT (A) ought to have adopted the KPWD rates rather than the CPWD rates for valuation of the house property. 9. The learned CIT (A) ought to have granted self-supervision charges at 10% of the total cost of house construction as against 6% allowed by the District Valuation Officer. 10. For these and such other grounds as may be advanced on or before the date of hearing, he appellant humbly prays that this Hon'ble Tribunal be pleased to allow this appeal and to render justice to the appellant. 23. Ground No. 1 is general in nature and does not require any specific adjudication. 24. Ground No. 2 is regarding addition on account of investment in construction of house. This issue is common as for the assessment year 2011-12. In view of our finding in this issue for the assessment year 2011-12 this issue stands disposed of in same terms. 25. Ground No. 3 is regarding addition on account of unexplained gold and silver to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee regarding the acquisition / purchase of the jewellery then presumption is raised that the jewellery was acquired during the year of search and it has to be assessed as undisclosed income of the assessee of the Financial Year in which the search was conducted. 28. We have considered the rival submissions as well as the relevant material on record. The limited issue raised before us by the assessee is regarding the rate of the gold to be applied for computing the unexplained income on account of investment in gold. The gold articles were found in the locker of the assessee as well as at the residence of the assessee. As per the descriptions of the articles found during the search we note that all these gold items are jewellery meant for women. Therefore, the entire jewellery found during the search was women jewellery. The assessee claimed that the majority of the jewellery was received by the wife of the assessee at the time of marriage in the year 1998 and remaining was received on the occasion of the birth of first son in the year 2002 and second son in the year 2007. Thus, the assessee claimed that the gold rates prevailing at the time of marriage as well as at th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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