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2012 (7) TMI 486 - AT - Income TaxValuation - consideration of self supervision factor which lead to less value - Addition made on account of unexplained investment in cost of construction of building u/s.69B - CIT(A) deleted the addition and allowed a deduction of 10% for construction under owner’s own supervision - Held that:- The assessee has shown cost of construction in balance sheet at Rs. 97,76,773/- whereas cost estimated by the valuer at Rs. 1,15,55,424/-. The difference is remained Rs. 17,76,412/-. There is own supervision in construction of bungalow which reduces the cost of construction. This benefit was allowed by the various ITATs near about 10% of the estimated cost of construction. The appellant also made expenditure after 31.03.2007. The A.O. has not brought on record any incriminating evidence found during the course of search and seizure operation for construction of bungalow. Thus considered view that the valuation made by the D.V.O. is an estimate and has variation in cost estimation. The appellant has explained the difference before the CIT(A), therefore, no reason to interfere in the order of CIT(A)as DVO has not considered self supervision factor - in favour of assessee. Rejecting the application for rectification u/s 154 and charging interest u/s 234B and 234C - Held that:- The interest u/s.234B and 234C was charged originally in the assessment order passed u/s 143(3) and in the order giving effect to the order of the CIT(A), the interest was reduced accordingly thus it is therefore, clear that there was no mistake apparent from the record in the order giving effect to the order of the CIT(A) and the AO has rightly rejected the rectification application u/s.154 against which the appeal under consideration is filed. - As the assessee has not raised any ground of appeal against charging of interest u/s. 2234B & 234C in the order passed u/s.143(3), thus through the rectification application, the appellant wants to raise the ground against the charging of interest by quoting wrong facts in the rectification application which cannot be accepted As no fault of the assessee in adjusting the cash against the advance tax even after written request had been made by the assessee, direction to the A.O. to give the credit of Rs. 23 lac as advance tax and charge interest after assuming advance tax paid Rs. 23 lac u/s 234B and 234C as per law
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