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2012 (3) TMI 292 - HC - Wealth-taxAddition - Search operations were conducted during the relevant year but no incriminating material/ document regarding understatement sale transaction was found - Assessing Officer, estimated fair market value of the property as on 1.1.1964 by adopting the rent capitalization method as provided in Schedule III to the Wealth Tax Act, 1957 - Assessing Officer held: - “The perusal of details submitted by the assessee company, indicate that sale consideration shown by the assessee company is absurd when compared with the rentals, these properties were fetching - The claim of the assessee is primarily based on the argument that its sale considerations are supported by sale deed/ other agreements etc - Held that: Assessing Officer failed to conduct a detailed enquiry and verification, which may have justified their stand regarding understatement or non-declaration of the actual sale consideration - Once it is shown that consideration has been understated, it may be open to the Assessing Officer to quantify the same by reference to the market value arrived at by the rent capitalization method in the absence of any material to show the precise extent of understatement - Revenue appeal dismissed
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