Sri Thodupunuri Anil(Huf), Hyderabad v. ITO, Hyderabad

ITA 1136/HYD/2009 | 2005-2006
Pronouncement Date: 03-09-2010 | Result: Partly Allowed

Appeal Details

RSA Number 113622514 RSA 2009
Assessee PAN AAAHT9529H
Bench Hyderabad
Appeal Number ITA 1136/HYD/2009
Duration Of Justice 9 month(s) 3 day(s)
Appellant Sri Thodupunuri Anil(Huf), Hyderabad
Respondent ITO, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 03-09-2010
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 03-09-2010
Date Of Final Hearing 26-08-2010
Next Hearing Date 26-08-2010
Assessment Year 2005-2006
Appeal Filed On 30-11-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B' HYDERABAD BEFORE SHRI G.C.GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.1134/HYD/09 : ASSTT. Y EAR 2005-06 ITA NO.1018/HYD/10 : ASSTT. Y EAR 2006-07 SHRI THODUPUNURI MOHAN (HUF) HYDERABAD. ( PAN AAAHT 9529 H) V/S. INCOME-TAX OFFICER WARD-5(2) HYDERABAD (APPELLANT) (RESPONDENT) AND ITA NO.1136/HYD/2009 : ASSTT. YEAR 2005-06 ITA NO. 1020/HYD/2010 : ASSTT. YEAR 2006-07 SHRI THODUPUNURI ANIL (HUF) HYDERABAD. ( PAN AAAHT 9530 N) V/S. INCOME-TAX OFFICER WARD-5(2) HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANIL SARAF DEPARTMENT BY : SHRI SUNIL BABU K.E. O R D E R PER G.C.GUPTA VICE PRESIDENT: THESE FOUR APPEALS OF THE ASSESSEES FOR THE ASSESSMENT YEARS 2005-06 AND 2006-07 ARE DIRECTED AGAINST THE ORDERS O F THE CIT(A). SINCE AN IDENTICAL ISSUE IS INVOLVED THE APPEALS ARE BEI NG DISPOSED OFF WITH THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE . ITA NO1134./HYD/09 AND 3 ORS SHRI THODUPUNURI MOHAN (HUF) & ANR.HYD 2 2. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ONLY ISSUE INVOLVED IN THESE APPEALS IS REGARDING THE ADDITIO N SUSTAINED BY THE CIT(A) ON ACCOUNT OF DIFFERENCE IN VALUATION BETWEEN T HE ASSESSEES' APPROVED VALUER'S REPORT AND THE DEPARTMENTAL VALUAT ION OFFICER (D.V.O.)'S REPORT ON THE COST OF CONSTRUCTION HE SUBMITT ED THAT THE D.V.O. HAS APPLIED CPWD RATES FOR VALUING THE COST OF CO NSTRUCTION WHICH ARE NOT APPLICABLE TO THE PROPERTY CONSTRUCTED IN THE CASE OF THE PRESENT ASSESSEES AND THERE IS ALWAYS A RATE DIFFERENCE OF 15% BETW EEN THE CPWD RATES AND THE PWD RATES OF THE STATE GOVERNMENT. HE SUBMITTED THAT IT IS NOW WELL SETTLED THAT THE ASSESSEE IS ENTITLED TO A DEDUCTION OF 15% ON ACCOUNT OF RATE DIFFERENCE BETWEEN THE CPWD AND PWD RATES AND THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH TH E DECISION OF THE HYDERABAD BENCH IN THE CASE OF ACIT V/S. VINODKUMAR AGAR WAL (257 ITR (AT) 65 (HYD) AND A SERIES OF OTHER DECISIONS OF THE TRIB UNAL. HE SUBMITTED THAT THE ASSESSING OFFICER MAY BE DIRECTED TO AL LOW DEDUCTION AT THE RATE OF 15% FROM THE VALUATION ESTIMATED BY T HE D.V.O. ON THE BASIS OF CPWD RATES AND TO WORK OUT THE VALUE OF COST O F CONSTRUCTION ACCORDINGLY AND IF THAT IS DONE THAT WOULD RESULT I N ALMOST 'NIL' ADDITION. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS OPPOSE D THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. HE SUB MITTED THAT THE ASSESSEE COULD NOT SHOW THAT THE BUILDING CONSTRUCTED W AS OF POOR QUALITY AND IT WAS NOT UPTO THE CPWD STANDARDS AND THE ASSESSEE COULD NOT ESTABLISH AS TO HOW IT WANTS DISCOUNT OF 15% OVER T HE D.V.O.'S ESTIMATE. HE RELIED ON THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A) ON THIS ISSUE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THE ISSUE OF APPLICABILITY OF CPWD RATES AND A DEDUCTION OF 15% ON THE ITA NO1134./HYD/09 AND 3 ORS SHRI THODUPUNURI MOHAN (HUF) & ANR.HYD 3 VALUATION ESTIMATE MADE ON THE BASIS OF CPWD RATES IS COV ERED IN FAVOUR OF THE ASSESSEE WITH A SERIES OF DECISIONS OF THIS TRIBUNAL I NCLUDING ONE IN THE CASE OF ACIT V/S.VINOD KUMAR AGARWAL (82 ITD 1 = 2 57 ITR (AT) 65(HYD)); AND THE RECENT DECISION OF THIS TRIBUNAL DATED 6.8.2010 IN THE CASE OF ITO V/S. AKULA VENKATESWARLU GUDUR (ITA NO.26 7/HYD/2010 FOR ASSESSMENT YEAR 2006-07). THERE IS NO DISPUTE IN THIS CA SE REGARDING THE FACT THAT THE D.V.O. HAS ESTIMATED THE COST OF CONSTRU CTION AS PER CPWD RATES. WE FIND THAT THE PWD RATES ARE APPLICABL E TO THE PROPERTY OF THE ASSESSEES AND ACCORDINGLY ASSESSEES ARE ENTITLED TO A DEDUCT ION OF 15% OVER THE D.V.O.'S ESTIMATE OF VALUATION. IN THIS VIEW OF THE MATTER WE DIRECT THE ASSESSING OFFICER TO ALLOW DEDUCTION AT 15% OUT OF THE VALUATION ESTIMATE APPLYING THE CPWD RATES MADE BY T HE D.V.O. AND WORK OUT THE COST OF CONSTRUCTION ACCORDINGLY. ACCORDINGLY GROUNDS OF APPEAL OF THE ASSESSEES ARE PARTLY ALLOWED. 5. IN THE RESULT APPEALS OF THE ASSESSEES ARE PARTLY ALL OWED. ORDER PRONOUNCED IN THE COURT ON 3.9.2010 SD/- SD/- (CHANDRA POOJARI) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- COPY FORWARDED TO: 1. SHRI THODUPUNURI MOHAN (HUF) C/O. SHRI S.RAMA RA O ADVOCATE 102 SHRIYA'S ELEGANCE DOOR NO.3-6-643 STRE ET NO.9 HIMAYATNAGAR HYDERABAD. 2. SHRI THODUPUNURI AMIL(HUF) C/O. SHRI S.RAMA RAO ADVOCATE 102 SHRIYA'S ELEGANCE DOOR NO.3-6-643 STRE ET NO.9 HIMAYATNAGAR HYDERABAD. 3. INCOME-TAX OFFICER WARD-5(2) HYDERABAD ITA NO1134./HYD/09 AND 3 ORS SHRI THODUPUNURI MOHAN (HUF) & ANR.HYD 4 4. COMMISSIONER OF INCOME-TAX (APPEALS)-V HYDERABAD 5. COMMISSIONER OF INCOME-TAX-V HYDERABAD 6. THE DEPARTMENTAL REPRESENTATIVE ITAT HYDERABAD. B.V.S .