TMI Blog2019 (12) TMI 1200X X X X Extracts X X X X X X X X Extracts X X X X ..... on Officer the provisions of section 16A (2), (3), (4) (5) of Wealth Tax Act would apply in the same manner as they apply to valuation referred under Wealth Tax Act. The Rule 3 of Schedule III of Wealth Tax Rules specifically provide for method of valuation of rented building as Rent Capitalization Method. The VO has only stated that it has been valued as per guidelines of Board. When there is specific provisions in the Act and Which provides valuation as per Rent Capitalization Method. In the case of tenanted properties. Hon`ble Rajasthan High Court in the case of CIT v. Pramod Chand Soni [ 2017 (9) TMI 1686 - RAJASTHAN HIGH COURT] held that where properties are rented for more than 50 years and was in possession of tenants at the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D.R. ORDER PER O. P. MEENA, ACCOUTANT MEMBER: 1. This appeal by the Assessee is directed against the order of learned Commissioner of Income tax (Appeals)-2, Amritsar (in short the CIT (A) ) dated 18.10.2016 pertaining to Assessment Year 2003- 04, which in turn has arisen from the assessment order passed under section 143 (3)read with section 254 dated 26.03.2015 of Income Tax Act,1961 (in short the Act ) by the Income Tax Officer- Ward-4(3) Amritsar, (in short the AO ). 2. Ground No.1 is against the issue of notice under section 148 of the Act that the notice is void-ab-initio. 3. We have perused the relevant mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declared sale value at ₹ 50,90,000 as per sale deed and property No 113/73 at ₹ 30,95,650 as against declared sale value at ₹ 28,00,000. Thus, the AO has worked out difference of ₹ 19,98,000 [(67,92,350+ 30,95,650) - (50,90,000+ 28,00,000)]and made addition at ₹ 9,99,000 being 50% share of the assessee in property sold. That the assessee has claimed before the AO that the valuation officer has adopted the land and building method for estimating the valuation of the property. Whereas in the case of properties were in possession of tenants for the last more than 30 years and has to be sold to them. The matter for valuation of the properties should have been adopted as Rent Capitalization Metho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation should have been provided to cost and life of property should have been taken 60 years was not found acceptable to CIT (A). Accordingly, addition made by the AO was confirmed. 7. Being, aggrieved the assessee filed this appeal before the Tribunal. The learned counsel for the assessees submitted that the properties were in possessions of tenants and sold to the tenants on as is where basis . The valuation of property should have been made by applying Rent Capitalization Method. Learned Counsel referred the provision of section 50C (2) which specifically provides that where reference is made by the AO to Valuation Officer the provisions of section 16A (2), (3), (4) (5) of Wealth Tax Act would apply in the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties and were in possession of tenants and were sold as is where basis to tenants in possession. The CIT (A) held that Land Building Method could not be applied and only Rent Capitalization Method could be applied. The facts of assessment year 2003-04 are identical. 8. The learned D.R. supported the orders of lower authorities. However, it was contended that section 50C reference is applicable for made is for valuation of income-tax purpose and it is not applicable to and provisions of section 16A of Wealth Tax Act are not applicable. 9. We have heard the rival submissions and perused the relevant material on record. We find that Section 50C (2) of the Act provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reference is made by the AO to Valuation Officer the provisions of section 16A (2), (3), (4) (5) of Wealth Tax Act would apply in the same manner as they apply to valuation referred under Wealth Tax Act. The Rule 3 of Schedule III of Wealth Tax Rules specifically provide for method of valuation of rented building as Rent Capitalization Method. The VO has only stated that it has been valued as per guidelines of Board. However, when there is specific provisions in the Act and Which provides valuation as per Rent Capitalization Method. In the case of tenanted properties. The learned counsel for the assessee further, placed reliance in the case of held that CIT v. Pramod Chand Soni 100 CCH 0333 (Raj.) and Waqf Alal Aulad v. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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