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TMI Blog1984 (12) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... ingla house' under construction, the findings of the WTO and that of the AAC being the same in all the cases and the same being the grounds of appeals raised by the revenue and the same were the arguments of both the parties, the learned senior departmental representative, Mr. R.K. Bali, and the learned counsel for the assessee, Mr. O.P. Bansal, this group of seven cases was heard together and is being disposed of by this consolidated order for the sake of convenience. 2. The common assessment year involved is 1979-80. In the original assessments, exemption was granted and, subsequently, under proceedings under section 17(1) of the Act, cases were reopened and reassessments were framed by the WTO denying the exemption to all the assessees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essees to the WTO on 12-8-1983, a copy of which he placed on the revenue's compilation and so far as law was concerned, he relied on the case of CWT v. K.B. Pradhan [1981] 130 ITR 393 (Ori.). He submitted that the house in question may be habitable for a chowkidar, rickshaw-wala or for any man of small means but not for the assessees, who in all invested lakhs of rupees on the construction and share of each one of them, so far as investment was concerned, exceeded over a lakh. 5. The learned counsel for the assessee, Mr. O.P. Bansal, on the other hand, beside relying on the orders of the AAC, submitted that even proceedings under section 17(1) in these cases were invalid and assessments framed were null and void, but he was fair enough to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessees, in their respective letters, have admitted that whitewashing has not been done and window-panes with wire-netting, etc., were not yet fixed. When we look to the house as a whole, and also in respect of portions built by all the seven co-owners on one side, and the factum that neither windows nor panes and wire-netting were fixed in the newly built house, besides whitewashing and painting was also not done till 31-3-1979. In the case of a newly built house, it is impossible to occupy the same and utilise it for residential purposes for even a man of ordinary means, what to talk of the assessees who in all invested over 7 lakhs of rupees in the property, as a whole when we really carefully go through the said decision of K.B. Pradha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s inherent in the word 'house' and unless it is habitable, the abode would not answer the commonsense meaning of a house. In the instant case, there is no clear finding by the Tribunal as to whether with the investment made during the two relevant years, the construction had reached a habitable stage. Merely from the fact that something more remained to be done in the year beyond the two years in review, it may not be presumed that the house had not come to a habitable condition on the valuation dates. While we do not agree with the assessee's counsel that habitability is not the test, we are of the view that the Tribunal would do well in recording a finding as to the substantial position of the construction on the two relevant dates. If it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n on the issue. Even in the course of the arguments, when it was put to the learned counsel for the assessee by the Bench, as to how much shall be the expenses on whitewashing or panes, his unequivocal submission was that a thousand or fifteen hundred in each case. When we look to the three cases, those of O.P. Singla, Deepak Singla and S.K. Singla, we find Rs. 10,000 was subsequently invested in respect of their respective shares whereas in respect of B.D. Singla, Sudhir Singla, A.K. Singla and V.K. Singla, Rs. 5,000 each were further invested. In respect of these investments as well, the learned counsel for the assessees submitted that it was more or less a bifurcation because in case of those, who were earlier debited for lesser amount, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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