Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 227 - HC - Income TaxValuation being made on incomparable basis - method of valuation - Tenancy rights - Did the authorities take extraneous materials into consideration while passing the impugned order ? - To what relief or reliefs are the parties entitled to ? - Held that:- None of the authorities cited with regard to valuation postulates that, the appropriate authority must value a property on rental basis when it doubts the tenancy. In the present case, the tenancy itself has been doubted in the impugned order. There are good reasons for doubting the tenancy. The respondent no. 4 and 5 are the owners. As owners they had entered into an agreement to sell the flat to the petitioner. The petitioner was and still is in possession and occupation of the flat. At the time of the agreement for purchasing the flat, the petitioner was in employment of the respondent no. 6. The respondent no. 6 is the tenant. The petitioner had superannuated from service with effect from January 1, 2007. In the event the petitioner is allowed to purchase the flat, then, it will remain in possession. The flat will have a tenancy without the tenant being in possession. The petitioner is no longer the employee of the respondent no. 6 since January 1, 2007. Appropriate authority had sufficient reasons not to recognize the tenancy. An impugned order is required to be adjudged on the basis of the reasons contained therein. However, it is permissible to consider the materials placed before the appropriate authority to decide whether the view expressed in the impugned order is sustainable or not. A Writ Court needs not interfere with the view expressed in an impugned order, if such view is plausible on the basis of the materials made available. It is not called upon to be an appellate authority even if there is no provision for appeal against the impugned order. As discussed above, I find no infirmity in the view expressed by the appropriate authority questioning the tenancy. No infirmity in the view expressed by the appropriate authority questioning the tenancy. at the time of valuing the property, the appropriate authority can consider an encumbrance to have been created for the purpose of defeating the provisions of Chapter XX-C of the Act of 1961 and value the property as if the same was without such encumbrance. None of the authorities cited, disallows such a course of action. All the authorities cited with regard to deployment of the rental method for the purpose of valuation are on a fact situation where, the tenancy was not doubted. Authorities of Court are not be read as statues. Deviation of any fact scenario can affect the applicability of the ratio of the cited authority on the subject matter to be decided. In view of the discussions above, it cannot be said that the appropriate authority took extraneous materials into consideration while passing the impugned order. The second issue is answered in the negative and against the petitioner.
|