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2016 (4) TMI 848 - AT - Wealth-taxReference the matter to the DVO for proper valuation of the properties - Whether the Commissioner of Wealth Tax (Appeals) has erred in placing reliance on the valuation given by the assessee in the return based on Govt. ready reckoner by rejecting the valuation given by the Approved Valuer? - Held that:- No error has been committed by the Commissioner of Wealth Tax (Appeals) in directing the Assessing Officer to obtain the report of DVO to ascertain the fair market value of properties under question. The assessee has offered his properties as co-lateral security for securing the loan from the bank. The value of the properties shown in the valuation report given by the Approved Valuer were deliberately taken on the higher side so as to obtain higher loan. This fact was disclosed by the assessee during the assessment proceedings. However, the Assessing Officer brushed aside the contention of the assessee and in an arbitrary manner adopted the value of the three properties mentioned hereinabove, as per the Approved Valuer’s report. The DVO in his report has valued the properties after considering the sale consideration of the properties in the vicinity and the total built up area of the properties. Whereas, the approved valuer without considering any sale instances and the prevailing rates estimated the value at much higher unrealistic rates. The Commissioner of Wealth Tax (Appeals) after considering the report of DVO and comparing it with the value declared by the assessee as per Govt. ready reckoner accepted the value of properties declared by the assessee. The value declared by the assessee as per Govt. ready reckoner and the valuation report submitted by the DVO are almost in the same range, barring minor variations. We concur with the findings of the Commissioner of Income Tax (Appeals) in adopting the value of the properties declared by the assessee as per Govt. ready reckoner and excluding Agri. Land from the list of assets assessable under Wealth Tax Act.
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