Law:

Section:

Section 69 of the Income-tax Act, 1961 - Unexplained investments Issues with regard to determination of cost of construction on basis of reports of registered valuer and Departmental Valuation Officer and with regard to application of State PWD rates or Central PWD rates to arrive at actual cost of construction are purely questions of facts [A.Y 1999-2000] The issues with regard to the determination of cost of construction on the basis of the reports of the registered valuer and the Departmental Valuation Officer and with regard to the application of the State PWD rates or the Central PWD rates to arrive at the actual cost of construction, are purely questions of facts. The determination of the cost of construction either on the basis of the report of the registered valuer or on the basis of the Departmental Valuation Officer cannot be gone into in an appeal, as it is purely a question of fact. Similarly, the application of the State PWD rates or the Central PWD rates to arrive at the cost of construction also cannot be gone into, as variations are bound to be there. Moreover, the valuation cannot be an arithmetical appreciation of the materials used for the construction nor the expenses incurred by the assessee in that regard, as variations are bound to be there between the Central PWD rates and the State PWD rates. Thus, where the Commissioner (Appeals) had not compared the registered valuer's report with the valuation officer's report while arriving at the cost of the construction, the Tribunal was justified in remanding the case. JUDGMENT P.D. Dinakaran, J.-The above tax case appeal is directed against the order of the Income-tax Appellate Tribunal in I. T. A. No. 552/Mds/2004, dated December 16, 2005, for the assessment year 1999-2000. 2. The brief facts are that the assessee constructed a kalyana mandapam. On scrutiny of assessment, the Assessing Officer referred the cost of construction to the Valuation Officer, who arrived at the cost of Rs. 52,93,400. On completion of assessment, the Assessing Officer, after allowing 15 per cent, rebate towards self supervision held that the assessee had admitted sources and accordingly, added a sum of Rs. 20,00,390.…

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