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TMI Blog2024 (9) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO is justified in adopting adhoc rate of Rs. 250 per sft nor the learned CIT (A) is correct in taking average rate of 380 per sft without there being any supporting evidences. Assessee justified the cost of construction of Rs. 500/- along with valuation report. Therefore, in my considered view when the appellant is able to establish/substantiate the indexed cost of construction with necessary evidences including the valuation report, the AO and the learned CIT (A) ought to have accepted the cost of construction as claimed by the assessee. Thus, set aside the order of the learned CIT (A) on this issue and direct the AO to adopt the cost of construction as claimed by the assessee. Expenses of transfer being the amount paid to Shri K. Mur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is an individual and not furnished his return of income for the A.Y 2016-17 u/s 139 of the I.T. Act, 1961. The assessment has been subsequently reopened u/s 147 of the I.T. Act, 1961 for the reasons recorded as per which information available with the Department shows that the assessee has sold an immovable property vide document No.1679/2015 for a consideration of Rs. 1,06,48,000/-. Therefore, the assessment has been reopened and called upon the assessee to file the return of income. The assessment has been completed u/s 143(3) of the Act and determined the total income at Rs. 34,19,920/- by making addition of Rs. 32,95,934/- towards disallowance of indexed cost of acquisition claimed by the assessee and expenses of transfer. 3. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment order, the assessee preferred an appeal before the learned CIT (A). Before the learned CIT (A) the assessee has furnished the copy of valuation report from the registered valuer in which the cost of construction during the financial year 1999-2000 was worked out to Rs. 15,98,000/- which comes to Rs. 726 per sft. The learned CIT (A) after taking into all relevant details and also statement of total income filed by the assessee observed that when the assessee himself claimed cost of construction at Rs. 500 per sft, it is impossible to believe the valuation report submitted by the registered valuer to arrive at the cost of Rs. 726/per sft. Therefore, taking into account the cost of construction claimed by the assessee which was at Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that except the cost of valuation report, no other evidence was filed to justify the cost of construction of Rs. 500 per sft. Further, there is an error in the valuation report submitted by the registered valuer to arrive at a cost of construction at Rs. 726 per sft when the appellant himself claimed cost of construction at Rs. 500 per sft. Therefore, the learned CIT (A) after considering the relevant facts has rightly allowed Rs. 380 per sft and therefore, the order should be upheld. He further submitted that as per records expenses of transfer, except 2 DDs, no other evidence was filed to establish Mr. Murari Raj was the tenant of the property. Therefore, the Assessing Officer and the learned CIT (A) rightly adopted the construction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew, neither the Assessing Officer is justified in adopting adhoc rate of Rs. 250 per sft nor the learned CIT (A) is correct in taking average rate of 380 per sft without there being any supporting evidences. At the same time, the assessee justified the cost of construction of Rs. 500/- along with valuation report. Therefore, in my considered view when the appellant is able to establish/substantiate the indexed cost of construction with necessary evidences including the valuation report, the Assessing Officer and the learned CIT (A) ought to have accepted the cost of construction as claimed by the assessee. Thus, I set aside the order of the learned CIT (A) on this issue and direct the Assessing Officer to adopt the cost of construction as c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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