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2023 (8) TMI 144 - AT - Income TaxAddition u/s 56(2) (vii) (b) in the head ‘other sources’ - Valuation of industrial shed/ constructed portion - difference in value adopted by stamp valuation and the value shown on the sale deeds - CIT(A) adopted the average value of the cost of construction suggested by DVO and the registered valuer - HELD THAT:- Assessee right from the beginning has taken a stand that at the time of registration of the sale deeds of both the plots the depreciation value of constructed portion was not taken into consideration. We find merit in the submissions of the assessee that when the plot alongwith the constructed structured was transferred, the depreciation value of structure (s) should be taken in to account while estimating cost of such construction. Assessee has placed on record the notification of Inspector General of Registration and Superintendent of Stamp, according to which the assessee is eligible for depreciation @ 1.2% per year. The structure/ constructed on both the plots were 19 years old, thus, the assessee is eligible for requisite depreciation. Further, the Jantri rate of Industrial shed in rural area is Rs. 11,200/- per square meter. Hence, direct the assessing officer to recalculate the value of industrial shed/ constructed portion @ 8646/- per square meter (depreciation for 19 ys @1.2 % i.e. 22.80% of Rs. 11,200/-). And to take the value of land of plot No. 4/B @ 580/ per square meter and for plot No. G-1 @ 600/-per square meter as there is no much variation in the rate of land in the report of DVO and Government approved valuer. Grounds of appeal raised by the assessee are partly allowed.
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