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2018 (4) TMI 259 - AT - Income TaxApplicability of State PWD rates and deduction for self supervision charges - rate difference in CPWD & State PWD rates - undisclosed investment - Held that:- The assessee is engaged in the construction of residential apartments and is having enough knowledge of construction and is capable of reducing the cost of construction by procuring the materials at reasonable cost and avoid the wastage. While arriving the cost of construction both the DVO and the A.O. did not consider these issues. Similarly, there is a rate difference in CPWD & State PWD rates. The CPWD gives the construction of its works to the private contractors and the private contractors include their profit margin in CPWD works. We direct the A.O. to allow the rate difference of 15% and self supervision charges to the extent of 10% from the cost of construction determined by the DVO and recompute the undisclosed investment year wise. Accordingly the appeal of the assessee on this ground is partly allowed.
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