MAHESHWARI DYING WORKS v. INCOME TAX OFFICER
[Citation -1986-LL-1125-1]
Citation | 1986-LL-1125-1 |
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Appellant Name | MAHESHWARI DYING WORKS |
Respondent Name | INCOME TAX OFFICER |
Court | ITAT |
Relevant Act | Income-tax |
Date of Order | 25/11/1986 |
Judgment | View Judgment |
Keyword Tags | cost of construction • departmental valuer • electricity board • valuation officer • approved valuer • cpwd rates • cash book |
Bot Summary: | A. KALYANASUNDARAM, A.M. These are two cross appeals one by the assessee and the another by the Department on the same issue regarding the addition to the income that is made on account of cost of construction. The plea of the assessee was that the assessee had constructed a factory building within a period of over three years at a cost of Rs. 3,30,831. The Department has treated the difference between a cost as per books of the assessee and the value arrived at by the departmental valuer as un-explained income. The assessee filed a detailed paper book containing approved valuer's report, summary of cost, details of suppliers of materials, objection to the valuation made by the departmental as well as comparative statement of difference in the values as per assessee and the departmental valuer. The primary objection of the assessee was that the departmental valuer knowing fully well that the property is in Jodhpur had applied the CPWD rates while he should have applied the PWD rates. A t the out set, we must observe that in para 3 of the ITO has observed that between the dates of 12th Sept., 1981 to 1st Oct., 1981 the cash book was not written up properly and the debits being more than the credits and ultimately the assessee had conceded that the excess debits be treated as income from undisclosed sources. The ITO is directed to treat the difference between the cost as shown by the assessee in his books and Rs. 3,75,000 and distribute the same unexplained over the period of construction of three years in the proportion of the cost shown to have been incurred by the assessee. |