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2018 (12) TMI 643 - HC - Income TaxFixing the cost of construction - reliance on the Departmental Valuation Officer's report - Held that:- Valuers report as well as the cost mentioned in the agreement entered into between the assessee and the contractor and ultimately after granting rebate for self supervision and procurement of materials at 5%, estimated the cost of construction at ₹ 55,99,821/-, as against the cost admitted by the assessee at ₹ 38,00,000/-. The Tribunal without assigning any reasons has fixed the cost of construction at ₹ 20,00,000/- by stating that it would be fair and reasonable to determine the value at that rate. The Tribunal failed to consider the correctness of the order passed by CIT(A) but faulted the AO. Tribunal ought to have assigned reasons as to why it was of the opinion that ₹ 70,00,000/- should be fixed as the construction of the hotel building. It is not sufficient to just state that it would be fair and reasonable. Why such value is fair and reasonable should be disclosed and it should be manifest on the face of the order. Faced with this situation, we may have to remand the matter for fresh consideration before the Tribunal. Appeals filed by the assessee are partly allowed and the cost of construction fixed by the CIT(A) is rounded off and fixed at ₹ 60,00,000/- and the Substantial Question of Law is left open
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