SIGN IN SUBSCRIBE

News Update

PM-STIAC discusses accelerating Industry-Academia Partnership for Research and InnovationIndia, Singapore hold dialogue over cyber policy44 bids received under 10th Round of Commercial Coal Mine AuctionsCops arrest former Dy PM of Nepal in cooperative fraud casePuri highlights India's Petrochemical potential at India Chem 2024UN reports record high cocaine production in ColombiaMinister unveils 'Aviation Park' showcasing India's Aviation HeritageED finds PFI wanted to start Islamic movement in IndiaBlocking Credit - Rule 86ASEBI says investors can use 3-in-1 accounts to apply online for securitiesI-T- Penalty u/s 271(1)(b) need not be imposed when assessee moved an adjournment application & later complied with notice u/s 142(1): ITAT4 Kanwariyas killed as vehicle runs over them in Banka, BiharI-T- Accounting principles do not prescribe maintaining of a day-to-day stock register, and the books of accounts cannot be rejected on this basis alone: ITATUN food looted and diverted to army in EthiopiaCus - Alleged breach of conditions for operating public bonded warehouse; CESTAT rightly rejected allegations, having found no evidence of any such breach: HCUS budget deficit surges beyond USD 1.8 trillionST - Onus for proving admissibility of Cenvat Credit rests with service provider under Rule 9(6) of the Cenvat Credit Rules, 2004: CESTATIf China goes into Taiwan, Trump promises to impose additional tariffsRussians love Indian films; Putin lauds BollywoodCus - Classification of goods is to be determined in accordance with Customs Tariff Act & General Interpretative Rules; Country-of-Origin Certificate may offer some guidance, but cannot solely dictate classification: CESTATCus - Benefit of such Country-of-Origin certificates cannot be denied if all relevant conditions are met under the applicable Customs Tariff rules: CESTATCuban power grid collapses; Country plunges into darknessCus - As per trite law, merely claiming a classification or exemption does not constitute mis-declaration or suppression - any misclassification does not equate to willful intent to evade duty: CESTATKarnataka mulling over 2% fee on aggregator platforms to bankroll gig worker welfare fundCus - Extended limitation cannot be invoked in case of assessee who is a regular importer with a consistent classification approach: CESTAT
 
Whether for purpose of valuation of renovation and cost of construction, when State PWD rates are not available, Revenue can rely on CPWD rates - NO: HC

By TIOL News Service

KOCHI, DEC 17, 2013: THE issue before the Bench is - Whether Revenue is right in relying on the rate of Central PWD for the purpose of valuation of the renovation and cost of construction when rates declared by the State PWD were available. And its answer is NO.

Facts of the case

The Assessee had constructed a house in the year 1995-96. He claimed expenditure of Rs. 20 lakhs and odd for the A.Y 2006-07 towards extension and renovation. However, the Department estimated the cost of renovation and construction at Rs. 42,10,000 .The entire issue revolves round the valuation made by the Department after personal inspection of the building in question. Neither the AO nor the CIT(A) agreed with the claim of the appellant assessee. The Tribunal accepted the report of the DVO, and opined that assessee did not point out any flaw in the valuation report.

On Appeal before the HC the Assessee Counsel submitted that when the rates declared by State PWD are available, that alone would govern the issue and not the CPWD rates. The Revenue Counsel submitted that the assessee never raised the contention that DVO placing reliance on CPWD rates, at any stage of proceedings, therefore, it is not open for him to raise such controversy before this Court.

Having heard the parties, the HC held that,

++ the cost of construction may very from State to State, therefore it is just and proper to place reliance on the local PWD rates rather than Central PWD rates in order to arrive at the valuation of the property. Ultimately the AO will have the other materials supplied by the assessee to know what exactly was the material used and what was the prevailing rate of such material apart from ascertaining the rates from PWD department which rate varies from time to time;

++ the orders of the three authorities based on the Central PWD rates are set aside by remanding back the matter to the AO who shall rely upon the report of the DVO at Thiruvananthapuram so far as value of the renovation and cost of construction for the A.Y 2006-07 and then proceed in accordance with the procedure contemplated.

(See 2013-TIOL-1032-HC-KERALA-IT)


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Shri Samrat Choudhary, Hon’ble Deputy CM & FM of State of Bihar, delivering inaugural speech at TIOL Tax Congress 2024.

TOP NEWS


AR not Afar by SK Rahman

VISION 360



Justice A K Patnaik, Mentor to Hon'ble Jury for TIOL Awards 2024, addressing the gathering at the event.

TII LATEST

TIOLCORPLAWS LATEST