GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2015 (12) TMI 832 - MADRAS HIGH COURT

2015 (12) TMI 832 - MADRAS HIGH COURT - TMI - Valuation of property - Adoption of State P.W.D. rates or the Central P.W.D. - Held that:- As decided in T.M.P.N.Murugesan -vs- Commissioner of Income-tax [2014 (8) TMI 57 - MADRAS HIGH COURT ] no justifiable ground to adopt the rate prevailing in cities like Delhi for the purpose of working out the cost of construction of house at Virudhunagar. When the details regarding the cost of construction at PWD rates for Virudhunagar District is applicable, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g Counsel for Income Tax JUDGMENT ( Delivered by R. Sudhakar,J. ) This Tax Case (Appeal) is filed at the instance of the Revenue as against the order of the Income Tax Appellate Tribunal for the assessment year 2008-2009 raising the following substantial questions of law: "1. Whether in the facts and circumstances of the case, the Tribunal was right in directing the Assessing Officer to adopt the State P.W.D. rates on the ground that the building is located in interior Tamil Nadu? 2. Whethe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ee, valuation is possible only as per CPWD rates?" 2. The respondent/assessee is carrying on business manufacturing hosiery garments. The assessment in this case relates to the assessment year is 2008-2009. The assessee filed its return of income for the said assessment year admitting total income of ₹ 7,14,250/-. The case was selected for scrutiny and the Assessing Officer had completed the assessment. Thereafter, survey under Section 133A was conducted in the business premises of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ict Valuation Officer. Aggrieved by the said order of assessment, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), who upheld the order of the Assessing Officer, thereby dismissed the appeal. 3. Aggrieved by the said order of the Commissioner of Income Tax (Appeals), the assessee pursued the matter once again before the Tribunal contending that the District Valuation Officer had adopted the CPWD rate, but the property is situated in Tamil Nadu. The Tribunal, after he .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssessee. Moreover, in many instances various judicial authorities have recommended 5% to 7.5% discounting factor in valuing the building on account of self-supervision and bulk purchase of materials. In the case of the assessee, there is no reason is stated by the Revenue as to why this benefit should be denied. The Revenue has also not brought out any materials on record to establish that the assessee had not supervised the construction of the building by its staff/partners. Considering the fac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

erefore, we hereby direct the Ld. Assessing Officer to value the cost of the building as indicated herein above and complete the assessment accordingly. We further make it clear that our aforesaid decision is based on the arguments made by the Ld.A.R. and the Ld.D.R. at the time of hearing of the case before us and no further issues or grounds were raised by either party." 4. Aggrieved by the above-said order of the Tribunal, the Revenue is before this Court raising the above-mentioned subs .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n 217 Taxmann 40, held as follows: "13. Therefore, it is evident that in a case of this nature, the Department should give credence to the valuation of the State P.W.D. in relation to the value of construction either on the side of the assessee or on the side of the Department. Since we find that there is no specific notification or circular indicating that CPWD rate alone should be adopted in arriving at the cost of construction, the Tribunal is justified in adopting the valuation of the S .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e also noticed that in the instant case, construction is in Tirupur, which is not a Metropolitan town. Nevertheless, the State P.W.D was authorised to give valuation for all constructions in the State of Tamil Nadu. Admittedly, the assessee's property, which is a subject matter of consideration, is in the State of Tamil Nadu. There cannot be a different yardstick adopted for valuation within the State. This will result in incongruous results, as one Officer is taking the rates fixed by the C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

12-7-2017 CGST Rate

12-7-2017 UTGST Rate

12-7-2017 UTGST Rate

12-7-2017 IGST Rate

More Notifications


Latest Circulars:

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

13-7-2017 Central Excise

13-7-2017 Customs

7-7-2017 Income Tax

7-7-2017 Goods and Services Tax

More Circulars



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version