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2017 (2) TMI 322 - AT - Income TaxReopening of assessment - spreading of unaccounted investments over the period of construction of the property - period of limitation - Held that:- This Tribunal has to confine itself only to the assessment year for which the appeal is filed either by the assessee or by the Revenue relates to. Since the appeals relating to assessment years 2002-03 and 2003-04 are not pending before this Tribunal, this Tribunal is of the considered opinion that even a casual reference made by ITAT with regard to assessment years of construction cannot be treated as direction or finding. When this issue came before another co-ordinate Bench of this Tribunal in Emgeeyar Pictures Pvt. Ltd. (2016 (6) TMI 418 - ITAT CHENNAI ), on a majority opinion, this Tribunal found that when the assessment was barred by limitation, the Revenue cannot reopen the assessments by virtue of opinion expressed by higher forum at a later stage. This Tribunal is of the considered opinion that reopening of assessments under Section 147 for assessment years 2002-03 and 2003-04 are barred by limitation. Estimation of cost of construction - Held that:- State Government has prescribed a rate for construction of building in the State. Central Government has also prescribed rate for construction of building. When there was a variation in the cost of construction between the State PWD and Central PWD, this Tribunal is of the considered opinion that the State PWD rate would be more relevant rather than Central PWD rate. The Central PWD rate might have been fixed by taking the cost of material available at the Headquarters, namely, New Delhi. The State PWD rate may be fixed on the basis of rate prevailing in a particular State. Adopting State PWD rate for construction may be preferable rather than Central PWD rate. Therefore, the orders of the lower authorities are set aside and the Assessing Officer is directed to estimate the cost of construction on the basis of State PWD rate.
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