2002 (10) TMI 50

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....ilding named as "S.K. Towers". As per the books of account maintained by the assessee, the total cost of construction came to Rs. 18,49,189. The assessing authority referred the matter to the Departmental Valuer and obtained a valuation report. As per the said valuation, the cost of construction came to Rs. 26,18,700. The assessing authority deducted Rs. 1,12,838 added by the Departmental Valuer as expenses on account of stronger foundation and Rs. 49,050 towards architect's fee and determined the cost of construction of the building at Rs. 24,56,812 and treated the difference of Rs. 6,07,623 as the income from undisclosed sources. In appeal by the appellant, the Commissioner of Income-tax (Appeals) reduced the said addition to Rs. 2 lakhs.....

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....g regular books of account with regard to the cost of construction of the building "S.K. Towers" and the total cost of construction as per the said books of account came only to Rs. 18,49,189. The appellant has also produced a valuation report of a registered valuer which also showed the approximate cost of construction as Rs. 18.3 lakhs only. The remand report obtained by the Tribunal from the assessing authority shows that the appellant had maintained regular books of account in respect of the expenditure incurred in the construction of the building. The assessing authority also found that in respect of the expenditure for purchase of steel rod, cement, aluminium fittings, etc., the accounts are supported by bills. It also shows that with....