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TMI Blog2007 (8) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... esh Kumar for the respondent. JUDGMENT The judgment of the court was delivered by P. P. S. Janarthana Raja J.- This appeal is filed under section 260A of the Income-tax Act, 1961, by the Revenue, against the order of the Income-tax Appellate Tribunal, Chennai Bench "B", Chennai, in I. T. A. No. 2682/MDS/1995, dated October 23, 2003. On July 19, 2004, this court admitted the appeal and formulated the following substantial questions of law : "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that the Assessing Officer was not justified in excluding the cost of lifts, excalators, EPABX, etc., since those assets were not purchased by the assessee but were owned by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per sq. ft. and adopted the cost of the area at Rs. 2,89,45,080. The difference of Rs. 51,70,931 (Rs. 3,41,16,011 minus Rs. 2,89,45,080) has been added back and assessed by the Assessing Officer. Aggrieved by the order, the assessee filed an appeal to the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) retained an addition to the extent of Rs. 1,88,940 out of the total addition of Rs. 51,70,931 made by the Assessing Officer. The remaining addition was deleted. Hence the appeal filed by the assessee was partly allowed. Aggrieved, the Revenue filed an appeal to the Income-tax Appellate Tribunal ("the Tribunal" in short). The Tribunal dismissed the Revenue's appeal and confirmed the order of the Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d given the necessary details as to why he has reduced the addition to Rs. 1,88,940 with facts and figures. Hence, the orders passed by both the Commissioner of Income-tax (Appeals) and the Tribunal are in conformity with law. 5. Heard counsel. The business of the firm is the construction of commercial and residential flats and sell/letting out the same. The only issue arising for consideration in this appeal is with regard to the computation of the income from a portion of the property sold during the year. Out of the total area of 2,85,875 sq. ft., an extent of 80,403 sq. ft. had been sold by the assessee to various persons during the year. There is no dispute regarding the sale value disclosed in the accounts, by the assessee. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee in respect of the entire property. The Officer thus worked out the cost of the total area of 2,05,875 sq. ft. at the difference amount of Rs. 7,40,15,986. The unit cost then worked out to Rs. 359.52 which was rounded off to Rs. 360 per sq. ft. The Commissioner of Income-tax (Appeals) had found that the amount of Rs. 1,33,39,272 excluded by the assessing authority for calculation of unit cost had actually related to cost in respect of 5 numbers of lifts, 2 escalators, EPABX system, dish antenna, DPG interest provision and lease rent payable towards a swimming pool. The Commissioner of Income-tax (Appeals) observed that the rates, at which the shops or offices or flats were sold in this complex were inclusive of the above amenities. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e above Commissioner of Income-tax (Appeals)'s order was confirmed by the Tribunal. The authorities below have given a finding that all the other benefits and amenities are commonly enjoyed by all the purchasers of flats/ shops in the complex and that, therefore, reducing such amounts for calculating the unit cost would not be proper or justified. The rates at which the shops or offices or flats were sold in the complex were inclusive of the above amenities. It is a pure question of fact. The findings given by the authorities below are based on valid materials and evidence. It is also seen that the earlier order of the Commissioner of Income-tax (Appeals) relating to the assessee's earlier assessment year, reached finality and the Revenue a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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