TMI Blog2010 (3) TMI 935X X X X Extracts X X X X X X X X Extracts X X X X ..... rred in law and on the facts of the case in determining the value of immovable property at Rs. 17,250 per square metre (assessment year 1996-97), Rs. 17,500 per sq. mtr.(assessment year 1997-98), Rs. 18,000 per sq. mtr. (assessment year 1998-99) and Rs. 18,325 per sq. mtr. (assessment year 1999-2000)." Briefly stated the facts are that the assessee is a company. It owns urban land measuring 1816 sq. mtr. situated at Plot No. 422, Ellis Bridge, Ahmedabad. For all the assessment years under appeals, the Assessing Officer determined the value of immovable property at Rs. 386.40 lakhs as against Rs. 271.35 lakhs declared by the assessee on the strength of the approved valuer's report. Earlier the issue regarding valuation of this property tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer and approved rate of Rs. 15,000 per sq. mtr. as admitted by the appellant. The same was not approved by the hon'ble Income-tax Appellate Tribunal in further appeal. Now as seen from the records, the value offered by the assessee as on March 31, 1995 at Rs. 307.53 lakhs works out to Rs.17,000 per sq. mtr. which was accepted by the Department. As on March 31, 1996, the value shown by the appellant at Rs. 271.35 lakhs is less than the value admitted as on March 31, 1995. As against this, the Departmental Valuation Officer has estimated the value of Rs.21,360 per sq. mtr., the basis of which is not explained in the order. It is this aspect which the appellant contends vehemently. The sale instances quoted by the Departmental Valuation Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is less than that declared as on March 31, 1995 is not acceptable. As rightly observed by the learned predecessor, the valuation of the property of this nature cannot be done with any mathematical and scientific precision. All the relevant factors and the market conditions have to be taken into account in deciding this issue. As already noted in the preceding para, the value of the immovable properties in the scheme area varied between Rs. 5,000 to Rs. 23,000 per sq. mtr. Taking into account the value as on March 31, 1995 at Rs. 307.53 lakhs worked out to Rs. 17,000 per sq. mtr. being accepted by the Department, the value for the succeeding four assessment years which are in appeal will have to be determined taking into account the followi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this regard. In the light of the above, I fix the value as on different valuation dates as under: 31-03-1996 Rs. 17,250 per sq. mtr. 31-03-1997 Rs. 17,500 per sq. mtr. 31-03-1998 Rs. 18,000 per sq. mtr. 31-03-1999 Rs. 18,235 per sq. mtr. (The value declared in Form 37-I and as approved by the competent authorities). Aggrieved by this order of the learned Commissioner of Wealth-tax (Appeals), the Revenue is in appeals before us. At the time of hearing, on behalf of the Revenue Shri Rajeev Agarwal, Commissioner of Income-tax, Departmental representative appeared and contended that as on March 31, 1995 relevant to the assessment year under appeal, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals) has directed the Assessing Officer to value the property in question for all the four assessment years ranging from Rs. 17,250 per sq. mtr., Rs. 17,500 per sq. mtr., Rs.18,000 per sq. mtr. and Rs. 18,325 per sq. mtr. as on March 31, 1996, March 31, 1997, March 31, 1998 and March 31, 1999 respectively is fair and reasonable. Therefore, the view taken by the learned Commissioner of Wealth-tax (Appeals) be upheld. Having heard both sides, we have carefully gone through the orders of the authorities below. It is pertinent to note that the urban land in question was purchased by the assessee from the Income-tax Department in 1991 at the rate of Rs. 9,563 per sq. yard and was sold for Rs. 18,235 per sq. yard in 1999 after eight years. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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