SHRI GOVINDRAM KALRA, Tarana V. THE ITO WARD 1(2), Ujjain

ITA 636/IND/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5829 (ITAT-INDORE)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2004-2005
• Appeal Filed On: 07-09-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S DESHPANDE
• Keywords: Valuation report
• Section: 148

Judgement Text

GOVINDRAM KALRA ITA NO. 636/IND/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, INDORE SHRI B.C. MEENA, HONBLE ACCOUNTANT MEMBER ITA NO. 636/IND/2015 A.Y.2004-05 SHRI GOVINDRAM KALRA TARANA ::: APPELLANT VS INCOME TAX OFFICER 1(2) UJJAIN ::: RESPONDENT APPELLANT BY SHRI S.S. DESHPANDE RESPONDENT BY SHRI R.A. VERMA DATE OF HEARING 22.12.10.2015 DATE OF PRONOUNCEMENT 2 . 2 . 201 6 O R D E R THIS APPEAL FILED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LEARNED CIT(A), UJJAIN, DATED 30.6.2015. 2. THE ASSESSEE IS AN INDIVIDUAL ENGAGED IN THE BUSINES S IN THE NAME OF PROPRIETORSHIP CONCERN M/S SANJAY GOVINDRAM KALRA ITA NO. 636/IND/2015 2 ELECTRONICS. A SURVEY OPERATION WAS CARRIED OUT AND IT WAS FOUND THAT THE ASSESSEE HAS CONSTRUCTED FIRST FLOOR AT HIS RESIDENTIAL HOUSE. THE ASSESSING OFFICER REFERRED TH E MATTER TO THE DISTRICT VALUATION OFFICER WHO HAS VALUED THE INVESTMENT AT RS.9,97,016/-. THE ASSESSEE SUBMITTED THE VALUERS REPORT WHEREIN THE COST WAS ESTIMATED AT RS.7,75,000/- BY TAKING VARIOUS OBJECTIONS WITH REGARD TO DVOS VALUATION REPORT AND THE ASSESSING OFFICER TOOK THE AVERAGE OF BOTH THE REPORTS AND MADE THE ADDITION OF RS.8,86,008/-. THE LEARNED CIT(A) GRANTED PART RELIEF TO THE ASSESSEE BY HOLDING AS UNDER :- KEEPING IN VIEW THE ABOVE JUDICIAL PRONOUNCEMENTS IT WILL BE APPROPRIATE TO REDUCE THE RATE ADOPTED BY THE DVO BY 25%. THE APPELLANT HIMSELF ENGAGED IN THE BUILDING CONSTRUCTION. SINCE THE APPELLANT IS HAVING EXPERIENCE IN THIS FIELD, H E IS ENTITLED FOR THE DEDUCTION ON ACCOUNT OF SELF GOVINDRAM KALRA ITA NO. 636/IND/2015 3 SUPERVISION. SINCE THE APPELLANT HIMSELF HAS DONE T HE SELF SUPERVISION IT WILL BE APPROPRIATE TO ALLOW FU RTHER DEDUCTION OF 10% ON THE RATES AS ADOPTED BY THE DVO. THEREFORE, THE COST OF CONSTRUCTION WILL BE REDUCED BY 35% (25% + 10%). THEREFORE, THE COST OF CONSTRUCTION OF THE PROPERTY WILL BE RS.6,48,060/- (RS.9,97,016/- X0.65). THEREFORE, THE ADDITION MADE BY THE A.O. TO THE EXTENT OF RS. 6,48,060/- IS CONFIRMED. THE APPELLANT WILL GET THE RELIEF OF RS.2,37,948/- (RS.886008 RS. 648060/-). THEREFORE, THIS GROUND OF APPEAL IS PARTLY ALLOWED. 3. BEFORE ME, THE LEARNED COUNSEL FOR THE ASSESSEE FAI LED TO CONTROVERT THE FINDINGS OF THE LEARNED CIT(A). TH E LEARNED COUNSEL FOR THE ASSESSEE HAS TRIED TO MAKE A CASE BEFORE ME BY STATING THAT THE CONSTRUCTION WAS CARRIED OUT IN VARI OUS YEARS. HOWEVER, WHEN HIS ATTENTION WAS INVITED TO VALUE RS REPORT OF R.G. PATHAK & ASSOCIATES, THERE WAS NO SUCH GOVINDRAM KALRA ITA NO. 636/IND/2015 4 ADVERSE REMARK IN THIS REPORT. FURTHER, THE COST IND EXATION HAS BEEN TAKEN FOR THE ASSESSMENT YEAR 2003-04 ONLY. FURTHER HIS ATTENTION WAS ALSO DRAWN TO A LETTER SUBMIT TED TO THE ASSESSING OFFICER DATED 12.11.2009 ON THE LET TERHEAD OF AUTHORISED REPRESENTATIVE BHAVALKAR & COMPANY WHEREIN THE ASSESSEE HIMSELF HAS REQUESTED THAT THE VALUATION MAY BE ADOPTED AT RS. 7,75,000/- AS PER THE REPORT OF R.K. PATHAK. I FIND THAT THE LEARNED CIT(A) HAS ALREADY GRANTED SUFFICIENT RELIEF. THEREFORE, THERE IS NO SCOPE FOR ANY FURTHER RELIEF. THIS GROUND IS, THEREF ORE, DISMISSED. 4. ANOTHER ISSUE IN THE APPEAL IS REGARDING CONFIRMING THE ADDITION OF RS. 62,000/- ON ACCOUNT OF LOW HOUSEHOLD WITHDRAWALS. 5. I HAVE HEARD BOTH THE SIDES. THE ASSESSEE HAS SHOWN SOME WITHDRAWAL OF RS. 18,000/- FOR HOUSEHOLD EXPENS ES. THE ASSESSING OFFICER ESTIMATED THE SAME AT RS.80,000 /- GOVINDRAM KALRA ITA NO. 636/IND/2015 5 AND MADE THE ADDITION OF RS. 62,000/-. THE LEARNED CI T(A) CONFIRMED THE SAME. 6. AFTER HEARING BOTH THE SIDES, I FIND THAT THE ASSES SEE DESERVES SOME RELIEF ON THIS ISSUE. I, THEREFORE, E STIMATE THE HOUSEHOLD EXPENSES AT RS. 60,000/- WHICH GIVES RELIE F OF RS.20,000/- TO THE ASSESSEE. THIS GROUND IS PARTLY AL LOWED. 7. AS FAR AS THE GROUND RELATING TO ISSUING NOTICE U/S 148 OF THE ACT IS CONCERNED, THIS GROUND WAS NOT PRESSED BEFORE ME. THEREFORE, THE SAME IS DISMISSED. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. PRONOUNCED IN OPEN COURT ON 2 ND FEB., 2016 SD/- (B.C. MEENA) ACCOUNTANT MEMBER 2 ND FEB., 2016 DN/-