COMMISSIONER OF INCOME TAX Vs. M N SULAIMAN

JUDGEMENT

(1.) FOR the assessment year 1970-71, the following questions of law have been referred to us for our decision at the instance of the Revenue :

(2.) THE Commissioner of Income-tax had for that assessment year initated proceedings under Section 263 of the Income-tax Act, 1961, as he felt that the order of assessment made by the Income-tax Officer on February 28, 1977, was prejudicial to the Revenue inasmuch as the value of the construction put up by the assessee had been understated and the low valuation offered by the assessee in the view of the Commissioner, had not been sufficiently revised having regard to the size of the construction and the rentals received from that construction. THE assessee had reported that the construction put up was at a cost of Rs. 60,000 and had also furnished a valuation report from a valuer who valued the construction at Rs. 92,000 but subsequently he gave another report valuing the construction at the figure of Rs. 59,000 which was less than the cost reported by the assessee in his return. THE assessee owned half a share in the building which consisted of three floors and which yielded substantial rents annually.

(3.) IN this view of the matter, the questions that have been referred to us are required to be answered in the negative, in favour of the Revenue and against the assessee and they are so answered.