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2012 (8) TMI 584 - ITAT, CHENNAIRevising the estimated cost of construction by CIT(A) - cost of construction assessed by Departmental Valuation Officer (DVO) - revenue contested against CIT(A) in allowing further relief over and above the ‘in toto’ relief allowed - Held that:- CIT(A)has not made any fundamental interference in the valuation made by the DVO and accepted by the assessing authority as modifications granted is in valuation of swimming pool were not on any technical ground, but on an accounting ground as the assessee had constructed the swimming pool and other structures in the subsequent year, and this modification worked out to Rs. 9,89,425/-. Modification in granting 3% reduction towards direct purchase of materials as direct and bulk purchase of materials normally yield a reasonable discount in the procurement price. Therefore, relief of 3% granted by CIT(A) is justifiable. Modification granted by reduction of 15% from CPWD rates which have been adopted by the DVO is not unreasonable as comparing it to CPWD rates, State PWD rates are less. On the basis of this difference, reliefs have been granted to the assessees in a number of cases both by the Tribunal as well as by the High Courts. Therefore the reduction of 15% is only just and proper - contention of the assessee that CIT(A) has not considered the entire amount spent by the assessee on the construction of the swimming pool is not acceptable as the CIT(A) has considered the same in his rectification proceedings - against revenue & assessee.
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