- (1.) BY THE COURT : On an application filed under S. 256(1) of the IT Act, 1961, the Tribunal has referred the following question for our opinion : "Whether, on the facts and in the circumstances of the case, the 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?"
(2.) THE assessee, who is an individual, constructed a house property in Malviya Nagar, Jaipur during the accountant period relevant to asst. yr. 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 AO 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 depend upon the material used, the location and the quality of construction. Therefore, straightway, applying the PWD rate of CPWD. rate is not justified in case of each house. What should be 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 finding of fact. No interference is called for. In the result, we answer the question in affirmative i.e., in favour of the assessee and against the Revenue. The reference so made stands disposed of.;