Home Case Index All Cases Wealth-tax Wealth-tax + AT Wealth-tax - 2015 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 1101 - AT - Wealth-taxValuation - Whether the CWT(A) is right in deleting the additions made to the taxable wealth in conformity with S.7, Schedule III, Part H of the Wealth-tax Act read with Rule 20 of the Wealth-tax Rules - Held that:- Assessee has relinquished his rights in the property in question for a consideration of ₹ 2.45 crores in the previous year relevant for assessment year 2008-09, and accordingly offered the capital gains arising from the said transaction for assessment under the income-tax Act, in the return filed for that year. Based on the same, the Assessing Officer was of the view that the assessee has assets chargeable to wealth–tax in the assessment years under consideration and they escaped assessment, and accordingly issued notice under S.17 of the Wealth-tax Act. The assessee has filed wealth tax returns in response to the notices under S.17 and included therein the assets in question, but adopted the value as per the circle rate fixed by the State Government Authorities for purpose of determining the stamp duty. But the Assessing Officer proceeded with the assessments adopting the amount of ₹ 2.45 crores received by the assessee in terms of settlement deed in the assessment year 2008-09. There is a prescribed rule of valuation of asset being land and building as per Wealth Tax Act. As per the said rule, the value of asset shall be taken at the valuation date by resorting to any of the modes specified in the said rule. In the instant case, the Assessing Officer has taken the received by the assessee in the year 2008-09, as the fair market value of asset for the preceding three years without any basis, which in our opinion is not correct. The Assessing Officer could have referred the issue of valuation of the property to the valuation officer under S.16A of the Act and find out the market value of the asset for each of these years separately. Without doing so, he adopted the amount received by the assessee in terms of settlement in the assessment year 2008-09, as the value of the property on the relevant valuation dates of the preceding three years, without any basis. The assessee, on the other hand, rightly adopted the circle rate of properties being the fair market value of the assets for the purpose of wealth tax assessments. - valuation taken by the assessee as per circle rates in the relevant years, deserves to be accepted - Decided in favour of assessee.
|