TMI Blog2022 (5) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, how the property was constructed within such a short spam of time - HELD THAT:- When the second floor of the property in question came into existence after the property was purchased by the assessee then the AO was required to get the fair cost of construction through the reference to the Valuation Officer. In the absence of such an exercise on the part of the AO, the cost of construction as determined by the registered valuer in the valuation report cannot be rejected - AO has also not given its finding about the proportionate cost of acquisition being cost of land attributable to the second floor and simply rejected the claim on the ground that the assessee has failed to support the claim by submitting documentary evidence. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to the effect that the property purchased for Rs. 6,60,000/- can be sold for Rs. 23,00,000/- can be sold for Rs. 23,00,000/- just after 2.5 months without making any improvements therein. iv. Because the learned CIT(A) as well as the learned Assessing Officer have failed to appreciate that the two conveyance deeds clearly gave description of the properties and the addition made to the property can clearly be seen by comparing the deeds. v. Because the learned CIT(A) as well as the learned Assessing Officer have erred in simply disregarding the valuation report of a qualified engineer to justify the illegal and injudicious addition. 2. The assessee is an individual and filed his return of income on 01.10.2013 declaring total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows the existence of the property at the time of purchase as well as at the time of sale. He has submitted that at the time of purchase only ground floor and small portion at first floor was in existence and the construction upto second floor was done after purchase of property and before the sale of the second floor. The learned AR has referred to the description of the property in the schedule of property as part of the purchased deed as well as part of the sale deed. He has also referred to the photographs of the property and site plan being the part of the purchase deed and sale deed and submitted that at the time of purchase only ground floor and part of the first floor was constructed and thereafter, the assessee constructed the prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total investment in the property has to be proved by the assessee which he failed. Nothing has been produced about the purchase of material or approval of the local authority for construction. The valuation report of the property carry no evidentiary value in the absence of any independent evidence. He has relied upon orders of the authorities below. 5. I have considered the rival submissions as well as the relevant material on record. The fact of the purchase of the property by the assessee bearing House No. B-37/171A, vide registered sale deed dated 9.01.2013 having built up portion up to two floors is not in dispute as it reflects from the sale deed as well as the site plan being part of the sale deed whereby the assessee has purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. However, the construction cannot be carried out without the cost thereof. Even if the assessee has failed to produce the supporting evidence towards the expenditure incurred on the construction, the same can be estimated by applying the prevailing rate of cost of construction having regard to the quality of the construction. The assessee has produced the estimated cost of construction through the valuation report which was not accepted by the Assessing Officer. However, the Assessing Officer has also not carried out any enquiry to find out the actual cost of construction if the cost of construction as determined by the valuer in the valuation report is not found to be correct. Therefore, having regard to the facts and circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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