2010 (3) TMI 896

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....towards cost of construction of kalyanamandapam by holding that the State PWD rates are to be adopted for valuation in place of CPWD rates adopted by the Assessing Officer. 3. The assessee, a civil contractor, had constructed a kalyanamandapam and shopping complex called Kailash Complex and Santhosh Mahal, at Thanjavur Main Road, Kattur, Trichy. The cost of construction had been admitted by the assessee at Rs. 84,69,000 on the basis of the valuation report from an approved valuer. The Assessing Officer referred the cost of construction to the Departmental Valuation Officer. The Departmental Valuation Officer, vide a letter dated 24-10-2006 submitted the valuation report wherein he has estimated the cost of construction at Rs. 1,11,32,000. ....

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....nal High Court in the case of K.K. Seshaiyer v. CIT [2000] 246 ITR 351 (Mad.) as well as decision of the hon'ble Rajasthan High Court in the case of CIT v. Hotel Joshi [2000] 242 ITR 478. He has also relied upon the decision of the hon'ble jurisdictional High Court in the case of A. Abdul Rahim v. ITO [2002] 258 ITR 714 (Mad.) and contended that 15 per cent deduction is just and proper for bringing the valuation as per the PWD rates. He has supported the order of the learned Commissioner of Income-tax (Appeals). 6. We have considered the rival contentions and relevant material on record. The difference in valuation adopted by the Assessing Officer based on the CPWD rates and directions of the Commissioner of Income-tax (Appeals) for deleti....