TMI Blog1995 (6) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... in the value of the property was estimated at Rs. 3,02,000. It appears that valuation of the property was referred to the Executive Engineer, Valuation Cell, Indore, but his report could not be received by the Assessing Officer till the assessment was framed on 27th March, 1991. The Assessing Officer, therefore, proceeded to value the property by adopting rent capitalisation method as follows: . Rs. Rs. Amount of rent realised . 1,33,445 Less: 1/6th for repairs 22,241, . Collection charges 6% 8,006, . Property tax 10% 13,344 43,, 590 . . 89,855 Taking multiplication of 100/8, value comes to Rs. 11,23,200 und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice dt. 17th Feb., 1989, under s. 25(2) of the WT Act proposing to revise the said assessments as in his opinion the value of the property should have been taken at Rs. 11,23,200 on the basis of rent capitalisation method. Shri Rawka pointed out that a detailed submission was made before the learned CWT, Bhopal, vide letter dt. 27th Feb., 1989, on consideration of which the learned CWT dropped the proceedings, vide his order dt. 27th March, 1989, a copy of which appears at page 2 of the compilation. Shri Rawka argued that the above factual position was within the knowledge of the learned WTO when he framed the assessment on 27th March, 1991, and, therefore, he should have completed the assessment on the basis of material available to him a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the property to the American Embassy it fetched rent of Rs. 5,000 p.m. only. Therefore, the rent realised by the assessee after the property was rented to the American Embassy does not represent the fair market value of the property and on that basis estimate of the value of the property would be highly excessive. Shri G.N. Sharma, the learned Departmental Representative, on the other hand, supported the order of the learned Dy. CWT(A). 5. We have considered the rival submissions. As stated earlier, the dispute related to the valuation of the house property situated at Delhi and was the subject-matter of appeal before the learned Dy. CWT(A), who, however, set aside the assessment without giving any specific direction to the learned WTO f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In this view of the matter, we reject the arguments advanced by Shri Rawka in this behalf. 7. It is an admitted position that the property is let out and is used for office purposes. Since the property is not wholly or mainly used for residential purposes, we agree with the submissions of Shri Rawka that r. 1BB of the WT Rules is inapplicable to the assessee's case. There is no dispute as to the annual rent realised by the assessee, which is admittedly Rs. 1,33,445. Since the property is rented, in our opinion, rent capitalisation method would be the appropriate method for valuation of this property. Before us, the assessee has filed working as per Schedule III of the WT Act as under: . Rs. Rent 1,33,445 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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