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2012 (12) TMI 332 - AT - Income TaxCost of construction – AO adopted value determined by the Departmental Valuation Officer – Tribunal directed AO to apply state PWD rates for the valuation of construction and instead of CPWD rates – CIT(A) orders reduction of 15% from cost estimated based on CPWD rates would automatically give a valuation at par with State PWD rates - Held that:- Nothing was brought on record by revenue to show that a reduction of 15% on the value based on CPWD rates would give a value at par with State PWD rates. Unless and until this can be demonstrated, we cannot say that the orders of authorities below are in accordance with the directions given by this Tribunal. Nevertheless, we also note that assessee did not give a valuation based on PWD rates before the AO. Therefore, matter has to go back to AO once again for deciding the issue in accordance with directions of the Tribunal. Appeal remand back to AO. Depreciation on motor Car – Personal v/s revenue expense - Assessee has purchased a car during the relevant P.Y. - AO stated that the said vehicle was classified under Non-Transport category - Business was carried on in Kumbakonam, whereas, the car was registered in Chennai - Disallowed the claim of depreciation on the car considering it to be personal in nature – Held that:- The car might have been registered as Non- Transport category vehicle, but, this will not preclude an assessee from using it for the purpose of its business. There is no Rule that every vehicle owned in a business, even if used by employees and executives, also should be registered as Non-Transport category vehicle. Just because the car was registered in Chennai and business of the assessee was in Kumbakonam, would not be a reason to disallow the claim of the assessee. Therefore, its claim that the car was used for the purpose of business could not have been brushed aside. Depreciation allowed. Appeal in favour of assessee Income from house property – A.O. had made the addition for rental income based on the report of his Inspector – Held that:- As such a report was never put to the assessee for her rebuttal. Findings of the AO and assertions of the assessee are at loggerheads. Nothing is available on record to verify which of this is correct. Therefore, issue remand back to AO
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