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2017 (5) TMI 194 - AT - Income TaxAddition of undisclosed investment in construction of house on the basis of report of the Departmental Valuer - validity of matter refereed to the D.V.O. - Held that:- The assessee has disclosed expenditure incurred in the construction of the house in various years starting from F.Y. 2007-08 to 2012-13. The assessee also submitted a valuation report with regard to the construction work done in the F.Y. 2007-08 and work done up to 2010 and on that basis the valuer has valued at ₹ 15,07,744/- for A.Y. 2007-08 and ₹ 2,82,655/- up to 2010. The survey team who visited assessee’s premises in the month of Feb, 2008 have accepted the investment in home at ₹ 15,00,000/- and the same was also accepted by assessee and disclosed in return of income. Thus, the valuation by DVO for F.Y. 2007-08 was excessive with regard to the assessee’s claim that the State PWD rate should have been adopted in place of CPWD rate or appropriate deduction should have been given out of CPWD rates as held in various cases by ITAT. ITAT in various cases have allowed reduction up to 20% from the CPWD rates. As also find merit in the plea of AR that 10% deduction should be allowed for self supervision. It is a justified claim. Thus the valuation done by the DVO by adopting the CPWD rate instead of State PWD rates and not allowing 10% for self supervision is held as excessive. Further the period of construction adopted by the DVO was also not justified in view of various documentary evidences filed by the assessee. Thus hold that the valuation report submitted by the assessee reflects the true affairs on the issue of period of construction and the cost of construction, therefore, direct to delete the addition made on the basis of DVO’s report, which is defective on many counts. - Decided in favour of assessee
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