TaxTMI 
TaxTMI 
2016 (7) TMI 1686
X X X X Extracts X X X X
X X X X Extracts X X X X
....a search and seizure operation u/s 132 of the Act on 26.11.1998 in the business and residential premises of the assessee. The block assessment was completed on 30.11.2000 by determining the undisclosed income at Rs. 82,91,629/-. Assessee preferred an appeal before the Ld. CIT(A)-1, Hyderabad and got substantial relief. Against the order of the CIT(A), revenue as well as assessee preferred an appeal before the Tribunal. The assessee's appeal was heard first and disposed of by order dated 24.3.2003 in IT(SS)A No.95/Vizag/2002. The Tribunal has granted a further relief and some of the issues relating to the computation of income from taxi business was set aside to the file of the A.O. Revenue's appeal in IT(SS)A No.99/Vizag/2002 separately was disposed off by the ITAT vide order dated 8.8.2008 with regard to the addition of Rs. 8,24,848/- in respect of investment in Tenali house property by observing as under: "We have carefully considered the rival submissions and perused the record. As could be noticed from the assessment order, there is no evidence on record to suggest that the property was owned by the assessee's wife as against the specific finding of the Assessing O....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pent an amount of Rs. 10,000/- towards stamp duty and registration charges by utilizing her Stridhanam. So far as construction cost is concerned, it was submitted before the Ld. CIT(A) that the cost of construction was only of Rs. 2,50,000/-. However, the DVO by adopting CPWD rates estimated cost of construction at Rs. 3,79,355/- and alternatively it was submitted that the land is belonging to assessee's wife and therefore, it has to be assessed in the hands of assessee's wife and not in the hands of the assessee. The Ld. CIT(A) after considering the cost of site at Rs. 85,630/- instead of Rs. 2,74,848/- as adopted by the A.O. 6. Regarding valuation of the building is concerned, the CIT(A) has observed that the registered valuer estimated the cost of construction at Rs. 500/- per s.ft. and the Ld. CIT(A) directed the A.O. to adopt the cost of building at Rs. 4,47,800/- instead of Rs. 5,85,387/- and appeal filed by the assessee was allowed partly. The relevant portion of the order of the CIT(A) is extracted as under: "7.2 I have considered the arguments of the assessee and also gone through the directions of the Hon'ble Tribunal.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lue of the property is stated as Rs. 75,750/-. Further it is stated that an amount of Rs. 9,880/- is spent towards stamp duty and registration. Thus the total investment in the land is Rs. 85,630/-. This being the value as per the registered document has to be adopted as the investment in site instead of the value estimated by the registered valuer. Hence I direct the AO to take Rs. 85,630/-instead of Rs. 2,74,848/- as value of the site. Regarding the valuation of building I have gone through the registered valuer's report found during the search who estimated the cost of construction @ Rs. 500/- per sft. I have also gone through the DVO's report and as per DVO's report the cost of construction Rs. 5,50,000/-. It is undisputed fact that the assessee did not maintain any books of account regarding the construction of property or did not produce any detailed construction account. In the light of the above, reference to the valuation officer is justified. On going through the valuation report I find that DVO valued the property at Rs. 5,85,387/- from which 6% deduction towards self-supervision is given. DVO followed CPWD plinth area rates for this purpose. As held by Hon&#....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ation made by the Hon'ble ITAT in IT(SS)A No.99/Vizag/2002 dated 8.8.2008. On appeal by the assessee, the Ld. CIT(A) has considered the value of the site as per the registered sale deed of Rs. 85,630/- and as far as cost of construction of the building is concerned, the Ld. CIT(A) has given 15% deduction by taking into consideration the local rates (PWD rates) and 10% deduction to self supervision and accordingly he came to the conclusion that the construction value of the property at Rs. 4,47,800/-. Accordingly, he directed the A.O. to adopt the total value of the Tenali house property including site and construction at Rs. 5,33,430/- (Rs. 85,630/- site + Rs. 4,47,800/- building). 10. So far as the objection raised by the Ld. Counsel for the assessee in respect of assessment which has to be made in the hands of the assessee's wife, the Ld. CIT(A) has observed that the assessment has been completed keeping in view of the observations made by the Hon'ble ITAT in the revenue's appeal in IT(SS)A No.99/Vizag/2012 dated 8.12.2008. After careful consideration of the assessment order and also order passed by the Ld. CIT(A), keeping in view of the specific ob....