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2018 (8) TMI 1143 - AT - Income TaxReassessment u/s 147 - determination of cost of construction account. - assessee filed objections stating that the cost of construction estimated by the DVO was very high and furnished the valuation report from the independent approved valuer - huge difference between the two valuation reports Held that:- The DVO has valued the property on the basis of CPWD rates and CPWD rates include the profit element of the contractor. Therefore, the CPWD rates cannot be applied mutatis mutandis to the constructions made in the local areas. There is a difference between the CPWD rates and state PWD rates. This Tribunal in the case of Padmini Priya Property Developers and Builders (2018 (4) TMI 259 - ITAT VISAKHAPATNAM) has considered similar facts and circumstances and allowed deduction of 15% towards the rate variation for CPWD rates and local rates and further reduction of 10% towards self-supervision from the value estimated by the DVO AO directed to allow the rate difference of 15% and supervision charges to the extent of 10% in cost of construction determined by the DVO and recompute the investments subject to minimum of the cost of construction admitted by the assessee.
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