2002-VIL-395-RAJ-DT

Equivalent Citation: [2004] 265 ITR 344, 181 CTR 472

RAJASTHAN HIGH COURT

Date: 28.08.2002

COMMISSIONER OF INCOME-TAX

Vs

DINESH TALWAR.

BENCH

Judge(s)  : Y. R. MEENA., SHASHI KANT SHARMA.

JUDGMENT

On an application filed under section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following question for our opinion:

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in applying Rajasthan PWD rates for working out the cost of construction of house property for income-tax purpose, instead of CPWD rates?"

The assessee, who is an individual, constructed a house property in Malviya Nagar, Jaipur, during the accounting period relevant to the assessment year 1990-91. The Department referred the matter to the Valuation Officer for working out the cost of construction of the property. After receipt of the report of the Departmental Valuation Officer, the Assessing Officer has made an addition of Rs. 1,46,400. While valuing, the Departmental Valuation Officer has applied the rate of CPWD for the purpose of valuation.

The Tribunal has valued the property adopting the rate of PWD. What should be the value of the construction, is basically a question of fact and that depends upon the material used, the location and the quality of construction. Therefore, straightaway, applying the PWD rate or CPWD rate is not justified in case of each house. What should be the cost of construction, the Tribunal has applied the rate of PWD that is on the facts and circumstances of this case, which is part of the finding of fact No interference is called for.

In the result, we answer the question in the affirmative, i.e., in favour of the assessee and against the Revenue.

The reference so made stands disposed of.

 

DISCLAIMER: Though all efforts have been made to reproduce the order accurately and correctly however the access, usage and circulation is subject to the condition that VATinfoline Multimedia is not responsible/liable for any loss or damage caused to anyone due to any mistake/error/omissions.