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2017 (2) TMI 166 - AT - Income TaxAddition made u/s. 69C - estimation the cost of construction of the plant - adoption of report of DVO - Held that:- The AO had not rejected the books of account of the assessee and no defect has been pointed out as to how the amount capitalised under building account totaling to ₹ 9.06 crores as on 31.3.12 was not reliable. Para-C of page 8 of PB talks of value of the work for which consultancy was to be paid and the estimated cost is mentioned at ₹ 5 crores. Page 10 and 11 of the PB are bills of the architect. In both the bills the amount mentioned is ₹ 5 crores. Pg-17 and 18 is the letter of the architect dt.13.6.13 wherein it had clarified the position about the value of property.It has been specifically mentioned in that letter that total cost of building upto 31.3.10 was Re.3.67crores.Besides,the assessee had given year-wise break up of expenditure made for construction of building and had capitalised the same. The accounts of the assessee were audited. In our opinion,there was no justification after letter of consultant to take the value of the building at ₹ 8 crores. The assessee had obtained a valuation report from a chartered engineer who is also a registered valuer and same was submitted to the FAA. As per the report of the registered valuer the estimated total cost of investment is ₹ 8.79,36,912/-.Thus there is a minor difference of ₹ 36,106/- in the cost of investment shown by the assessee and cost estimated by the registered valuer. Thus restricting the addition to the figure mentioned in the report of the DVO,cannot be held be justifiable. We hold that order of the FAA cannot be endorsed - Decided in favour of the assessee.
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