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2013 (7) TMI 146 - HC - Income TaxValuation of Shopping cum residential complex - Addition in construction costs - Difference between CPWD rate and state PWD rate - Held that:- construction of the shopping and residential complex is in Coimbatore, which is not a small town, but a Corporation - Assessing Officer partially agreed with the assessee and allowed the valuation at 10% instead of 7.5%, towards supervision charges. The Assessing Officer also accepted the contention that water connection was already existing; apart from that, certain other concessions were given. However, the basis of valuation as regards the cost of construction, nevertheless, was that of the District Valuation Officer, adopting CPWD rates. It is not denied by the Revenue that there is a variation between the CPWD rates and the State PWD rates. Considering the geographical location, the availability of work force and the cost of materials, unless there are similarities in the rates under CPWD and the State PWD, we do not think, we can blindly go by CPWD rates for the purpose of arriving at the cost of construction - Assessing Officer directed to work out ost of construction, to be distributed in assessment years 1997-98 and 1998-99 by taking State PWD rates - Decided in favour of revenue.
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