Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 1366 - AT - Income TaxRejection of books of accounts – A.O. rejected the books of accounts only because of non maintenance of measurement book - prescribed books of accounts as per Rule 6F of Income-tax Rules – Held that:- Books of accounts were rejected as it was found to be very difficult to ascertain the consumption of various raw material as shown in the books of accounts in absence of a measurement book - DVO has not completely relied upon the books of accounts. Had it been the case then the DVO would have accepted the cost of construction declared by the assessee before him at Rs.6,59,57,184/- and would not have determined it at Rs.7,48,58,300/- - In the circumstances, it cannot be said that the rejection of books of accounts was not valid – Decided against the Assessee. Deduction, when there is variance between CPWD and State PWD rate – Held that:- CIT(A) was justified in upholding plinth area basis for determining cost of construction over the CPWD rates and further reduction of 10% on account of personal supervision. - No force in department's submission that the object of determining that rate of 10% for personal supervision was given only because, the assessee in that case himself was an engineer. The assessee is entitled for deduction of 15% on account of rate variation between CPWD and State PWD and 10% towards self supervision. If the aforesaid deductions are allowed, then the cost of construction shown by the assessee at Rs.6,59,57,184/- would be more than the cost of construction determined by the DVO and there will be no case for addition on account of excess cost of expenditure incurred by the assessee– Decided in favor of Assessee.
|