COMMISSIONER OF INCOME TAX Vs. S N SONS

JUDGEMENT

(1.) THESE appeals are directed against the common order dated 15. 10. 2003 of the Income Tax Appellate Tribunal Madras 'a' Bench made in I. T. A. Nos. 641 to 643/mds/2003, with reference to the assessment years 1996-97, 1997-98 and 1998-99 respectively.

(2.) BRIEF facts leading to the filing of these appeals are as follows: as per the books of accounts maintained by the respondent/assessee, the cost of construction of the cinema theatre was shown as Rs. 36. 61 Lakhs, and in support of the same the respondent/assessee had also obtained a report from a Registered Valuer, in which the valuation has been fixed at Rs. 38. 33 Lakhs. However, the Assessing Officer referred the matter for valuation. As per the report of the Departmental Valuation Officer, the cost of construction works out to Rs. 77. 06 Lakhs.

(3.) THE Calcutta High Court in Nataraj Cinema Vs. Commissioner of Income-tax, [2002] 257 ITR 415, held that the issue of cost of construction of the cinema theatre is basically a question of fact and no substantial question of law arises.