2011 (6) TMI 894

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....pectively. C.O. Nos. 38, 39 & 40/Mds/2011 are cross objections filed by the assessee in the Revenue's appeals in ITA Nos. 177 to 179/Mds/2011 respectively. 2. Shri P.B. Sekaran, learned CIT-DR represented on behalf of the Revenue and Shri T.N. Seetharaman, Advocate represented on behalf of the assessee. 3. At the time of hearing the learned authorised representative of the assessee submitted that he did not wish to press the cross objections filed by the assessee in CO Nos. 38 to 40/Mds/2011. Consequently, the cross objections filed by the assessee are dismissed. 4. In the Revenue's appeal, only one issue is involved which is against the action of the learned CIT(A) in deleting the addition representing the unaccounted investment i....

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....the assessee and as estimated was reduced to ` 6,53,866/-. It was the submission that the learned CIT(A) ought to have appreciated that the CPWD rates were liable to be applied even though the building was situated at Karur. He vehemently supported the order of the Assessing Officer. 5. In reply, the learned authorised representative drew our attention to the DVO's report in para 5.3 wherein the DVO had mentioned that the period of construction was April, 2006 to March, 2007 for the purpose of applying the specific cost index of 282.75. It was the submission that in the course of survey the books of accounts of the assessee had been impounded and the assessee had disclosed the cost of construction in regard to the said property between M....

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....as also in his report in para 5 accepted that the plinth area rates prepared by the Tamilnadu State PWD and also by the Govt. of India are available. Once the PWD rates are available and the area falls within the PWD rate, then obviously it is the PWD rate that should be applied and not the CPWD rate. It is noticed that the learned CIT(A) has also granted relief to the assessee by estimating the discount of 10% from the CPWD rates to arrive at the PWD rates and has also given 7.5% towards selfsupervision. A perusal of the DVO's report clearly shows that the discount for self-supervision has not been granted. It is also noticed that the assessee has maintained its books of accounts in regard to the cost of construction and this has been impo....