SMT. BASANA RANI SAHA Vs. INCOME TAX OFFICER.

JUDGEMENT

(1.) PER Shri Egbert Singh, AM. - The appeals are by the assessee which involved common facts and interlinked materials. Accordingly, we consolidate the appeals for disposal by this common order.

(2.) FROM the assessment order for assessment year 1972 -73, it is seen that the matter was restored to the file of the ITO by the Appellate Tribunal. Hence, fresh assessment was made. The Appellate Tribunal vide order dated 5 -5 -1977 mentioned that it was necessary that the matter should go back to the ITO for fresh disposal as there was some doubts expressed by the AAC regarding the area of construction of 337 sq. ft. The Appellate Tribunal observed that the ITO has also not given the basis for the estimated cost of construction per sq. ft. in respect of the building raised by the assessee. It was, therefore, necessary for the ITO to go into the question again and decide the matter afresh. Regarding the business income also, the assessee stated that the records of the earlier years need verification as to the income estimated and why the estimates of the years under appeal should be higher than the earlier years.

(3.) THE ITO mentioned that the assessee constructed one two -storeyed RCC building used as hotel, viz., M/s. Gauri Hotel, Station Road, Karimganj. The investment was stated to be at Rs. 1,28,290 with plinth area of 5875 sq. ft. According to the ITO, the cost of the investment was low and, therefore, the case was refereed to the Departmental Valuation Officer, Gauhati, who estimated the cost of construction at Rs. 1,92,350 up to the end of 31 -3 -1973. There was, therefore, a difference of Rs. 54,160 which the ITO spread over at the ratio of 50 : 50 for these two assessment years. Hence, the addition of Rs. 27,000 each for both the years.