TMI Blog2002 (3) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... which is owned by the assessee and used as a guest house. During the assessment proceedings, the Assessing Officer noted that the assessee had shown the value of the above property at ₹ 1,55,139 on the valuation date March 31, 1993. The Assessing Officer made a reference to the Valuation Officer who valued the building at ₹ 2,60,73,000. The Assessing Officer called upon the assessee to explain why the valuation of the property be not taken as per the valuation report. The assessee replied that the valuation has to be done under section 7(1) of the Wealth-tax Act, 1957, in accordance with the rules 3 to 8 of Schedule III to the Act. Rule 3 states: 3. Subject to the provisions of rules 4, 5, 6, 7 and 8, for the purposes of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nable rent', in relation to any immovable property referred to in rule 3, means-- (i) where the property is let, the amount received or receivable by the owner as annual rent or the annual value assessed by the local authority in whose area the property is situated for the purposes of levy of property tax or any other tax on the basis of such assessment, whichever is higher; (ii) where the property is not let, the amount of annual rent assessed by the local authority in whose area the property is situated for the purpose of levy of property tax or any other tax on the basis of such assessment, or, if there is no such assessment or the property is situated outside the area of any local authority the amount which the owner can reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the property and valuation done by the assessee on the basis of the municipal authorities where the rateable value determined by the municipal authorities was ₹ 6,573 and valuation so arrived was ₹ 1,55,130. In fact the assessee himself agreed to sell his property through his agreement dated May 11, 1995, for a sum of ₹ 10.26 crores. The assessee had also made improvements. In our opinion, it would be shocking to say that a flat in a locality like Worli in Bombay was worth only ₹ 1,55,130. Everyone knows that prices of flats in Bombay are very high and the petitioner himself had agreed to sell it on September 15, 1995, at ₹ 10.26 crores. It would be rediculous to say that the price of the flat is only ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
