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2016 (12) TMI 1783 - ITAT HYDERABADRebate of 15% from the cost of construction determined by the valuation officer by following the CPWD rates - variation between the CPWD and State PWD rate - HELD THAT:- CIT (A) has adopted the CPWD standard rate as against the rates prescribed by the State PWD for valuation of the cost of construction and taking into consideration various decisions relied upon by the assessee, he allowed the rebate of 15%. We have also gone through the decision of the Coordinate Bench of the Tribunal in the case of Sri Krishna Ventures P Ltd vs. Income Tax Officer [2013 (11) TMI 1366 - ITAT HYDERABAD] and find that the Tribunal has analyzed the difference between the CPWD rate and the State PWD rate and has given justification for allowing 15% rebate on account of rate variation between the CPWD and State PWD rate. 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 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. In aforesaid view of the matter, the additions cannot be sustained, hence we direct for deleting the same. - Decided against revenue
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