TMI Blog1978 (8) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... was plot No.F-24/A situated in Hauz Enclave, New Delhi, measuring 493.7/10 sq. yards which was transferred by Mrs. Malti Bhandari in favour of Shri Kesri Chand for a consideration of Rs.49,000 by a sale deed dated December 6, 1972. The competent authority under the Act being Shri C.V. Gupta, IAC of Income-tax, passed an order on February 4, 1974, holding that the fair market price of the property was Rs. 88,886 and, therefore, the fair market price exceeded the apparent consideration by at least 25%. Accordingly, he passed an order under s. 269F giving three findings which were : " (a) That the immovable property to which the proceedings relate has a fair market value exceeding Rs. 25,000. (b) The fair market value of such property e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision in this appeal I.T.S.A. No. 7/75 will also govern the other case. The provisions of s. 296H indicate that an appeal lies to the High Court on a question of law ; so we are really concerned with whether there is any infirmity on a point of law as far as the Tribunal's decision is concerned. Mr. Kirpal, learned counsel for the department, has urged that the material which was considered by the competent authority in reaching his decision regarding the valuation of the plot has either been omitted from consideration or has been overlooked by the Tribunal, and, therefore, virtually the decision of the Tribunal is perverse in the sense that it is not based on all the materials which were before the competent authority. It is urged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13, 1972, at rates which vary from Rs. 160 per sq. metre to Rs. 203 per sq. metre. The average rate was worked out at Rs. 173 per sq. metre which was equal to Rs. 145 per sq. yard. As the property involved in the present transaction was freehold, an addition of Rs. 58 per sq. yard was made for making the proper valuation at Rs. 203 per sq. yard. As there were some disadvantages in the plot, this was further reduced to Rs. 190 per sq. yard and the market value was, therefore, estimated at about Rs. 93,700 as compared to the apparent consideration of Rs. 49,000. The Assistant Commissioner considered the objections of the party to the valuation report and referred himself to some other sales which were in Masjid Moth, Malviya Nagar Extensi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1966, the price was Rs. 50.70 per sq. yard whereas in the impugned sale it was Rs. 99.40 per sq. yard. The Tribunal also considered whether the price of the plot should be enhanced by 40% over the corresponding value of leasehold plots and also considered whether the fair market value should not be lower than in normal cases because it was an irregular plot and suffered from the other handicaps already stated. In its conclusions set out in para. 4.1 of the order the Tribunal found that the value of freehold land exceeded that of leasehold land by 25% ; but in the case of this plot on account of its disadvantages, the true value was 2/3rds of the normal market price. Acting on this principle, the Tribunal took the normal price of leasehold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause it does not suffer the possibility of the lease being determined or there being any obligation to pay lease money. However, generally when one considers a long-term lease and one considers freehold land, there does not appear to be so much difference in the price as far as ordinary experience goes. The competent authority has given an example of a freehold plot whose price is considerably greater per sq. yard than the price of the leasehold plots mentioned in that very order. However, as the plots are not situated in the same area, it is difficult to ascertain any definite principle from these examples. As we have not been able to find any rule or practice regarding the amount by which freehold land has a greater value than land obtain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is impossible to lay down any hard and fast rule regarding reductions for irregular shaped plots. Each case must be carefully considered, when making a valuation, and dealt with in accordance with the information available. " It is contended by Mr. Kirpal that the valuation report by Mr. Bilhotra submitted in the wealth-tax case of the assessee mentioned the plot to be slightly irregular, and, therefore, the competent authority was right in reducing the price by only Rs. 13 per sq. yard. On the other hand, actually the competent authority did not reduce the value at all as far as the analysis in paras. 25 and 26 of its order reveals. It is true that the valuation officer had reduced his calculated fair market value by Rs. 13 per sq. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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