9911796707
TMI Blog2008 (6) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the assessing officer on the income of the 3 flat complexes promoted by the assessee? 2. The brief facts are as follows:- The assessee is one of the popular flat promoters in Chennai. The relevant assessment year is 1995-96 and the corresponding accounting year ended on 31.03.1995. The original assessment was completed on 23.02.1998 on the total income of Rs.2,45,80,050/-. On appeal, the Commissioner of Income-tax (Appeals) has set aside the order of assessment with a direction to re-do the assessment. After giving an opportunity to the assessee, the Asssessing Officer has passed an Assessment order under Section 143(3) of the Income Tax Act and determined the total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set aside. 4. Heard the learned counsel for the revenue. During the relevant period, the assessee has completed three housing projects viz., (1) 224, Lloyds Road, (2) 20/21, Dwaraka Colony, Royapettah High Road, Mylapore, and (3) 65, Burket Road, T.Nagar and the Assessing Officer made additions in respect of the above projects and held as follows: "LLOYDS ROAD PROJECT: Alacrity Housing Limited had done a project in No.199, 200 Lloyds Road. The project commenced in February 1993/March 1993 and was delivered in May 1994 to June 1994. The average rate of sale was Rs.885 per sq.ft. In the same area (ie)224 Lloyds Road, the assessee has sold around the same time at an average rate of Rs.812/- sq.ft. As already explained there is no reason f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- Difference added to returned income 12,20,023/- BURKIT ROAD, T.NAGAR, PROJECT: In this project the land cost has been directly borne by the buyers. The assessee company has charged them only construction cost. The project has been sold between the period June 1992 to July 1994. The average rate of sale per sq.ft was Rs.389/- per sq.ft. This has been compared with the project of Alacrity Housing Ltd in Venkat Narayana Road done during the same period (ie) June 1993 to January 1995. The Alacrity Housing Ltd has split the sale value into land cost, construction cost and registration charges. As the assessee has not incurred land cost, only construction value has been compared which was Rs.493 sq.ft for Alacrity Housing Ltd. The same has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; ".... Coming to the factual position I am of the considered opinion that the appellant's representative has made out a strong case, that how they were forced to sell the flats at a lower rate than that of the flats promoted by M/s.Alacrity Housing Ltd. The location of the property environment availability of amenities. Of the deciding factors for the sale price of the flats. The appellant has established is in respect of 3 property promoted that they were located in a disadvantageous position than those projects promoted by Alacrity Housing Ltd. These facts had not been controverted by the assessing officer. The appellant's quality of construction design and execution is no compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner (Appeals) also discussed the factual details. The assessee explained as to under what circumstances they proposed to sell the flats at a lower rate than that of the flats promoted by M/s Alacrity Housing Limited. He also considered the location of the property, environment and amenities. It was found that the properties promoted by the assessee were located at different places and comparing to the projects promoted by M/s Alacrity Housing Limited the location was disadvantageous. The quality of construction, design and execution were also beyond comparison. The assessee constructed the flats to cater the needs of middle class, whereas it was noted that M/s Alacrity Housing Limited caters the needs mainly of non resident Indians and up ..... X X X X Extracts X X X X X X X X Extracts X X X X
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