TMI Blog1992 (5) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 at Rs. 3 lakhs from the sale value of Rs. 10,80,000, the capital gains was Rs. 7,80,000 and since the assessee had purchased a new house property at 130, St. Mary's Road, Madras-18 for Rs. 7 lakhs and incurred stamp duty of Rs. 1,00,000 and also made investments in Unit Trust of India for Rs. 25,000 and National Savings Certificates for Rs. 2,50,000, the capital gains arising from the transaction was not exigible to tax. The assessment was originally completed accepting the claim of the assessee. However, by order dated 23-1-1986, the Commissioner set aside the order acting under section 263 of the Income-tax Act, and directed the I.T.O. to make a fresh assessment. 3. In the fresh assessment made on 28-9-1987, the ITO noted that the tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determination of the market value as on 31-3-1964 for the purpose of Wealth-tax Act was only a piece of evidence and was not conclusive. It was pointed out that there was an instance of a sale of an adjacent property at No. 7, Nungambakkam High Road, Madras for Rs. 73,580 in April 1964 and since that property consisted of 5 grounds of land, the rate per ground was more than Rs. 10,000 which formed the basis for the assessee's claim that the property in question should be taken at Rs. 3 lakhs as on 1-1-1964. 6. On the other hand, it was contended on behalf of the revenue that the assessee having returned the value of this property in question at Rs. 1,30,000 which was accepted by the WTO, she was precluded from contending otherwise for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gains. We are unable to accept this contention of the revenue which implies that there was an admission regarding the value of the property leading to an estoppel. An admission is a statement which suggests any inference as to fact in issue by a person having an interest in the subject-matter. But such a statement does not amount to an admission when it consists merely of an opinion or belief. As pointed out by the Bombay High Court in the case of New Excelsior Theatre (P.) Ltd. v. M.B. Naik, ITO [1990] 185 ITR 158, an inference relating to the market value of a property is a matter of opinion, for, even the valuation of a property by a valuer on hypothetical basis is a question of opinion. Therefore, an opinion held even by an owner of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s them the right to ask for refund on a proper appraisement and which they actually applied for, we do not attach any significance to this aspect of the matter pointed out by Counsel. " [Emphasis supplied] 10. In a similar case of Addl. CIT v. Smt. Indira Bai [1985] 151 ITR 692 (AP), the revenue questioned the order of the Tribunal accepting the value shown for a property for capital gains even though it was less than the value shown for wealth-tax purposes. The Andhra Pradesh High Court in that case observed : " The Tribunal held that the sum of Rs. 2,50,000 declared by the assessee for the assessment year 1957-58 could not constitute estoppel, especially in view of the above circumstances, against determining the correct value of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out proper enquiry for, the evidence now available regarding sale of an adjacent property in April 1964 had not been adverted to. 12. The alternate case of the revenue is that since we are concerned with the question of finding the fair market value of the property as on 1-1-1964, the determination of such fair market value for wealth-tax purposes should be adopted for the purpose of capital gains also. Though section 55 of the Income-tax Act uses the phrase "fair market value of the asset as on 1-1-1964", and section 7 of the Wealth-tax Act uses the phrase " value of any asset, other than cash, for the purposes of this Act, shall be estimated to be the price which in the opinion of the Wealth-tax Officer it would fetch if sold in the ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the person to be compensated is given a full money equivalent of his loss, while in the first it is to ascertain what money value is plainly contained in the asset so as to afford a proper measure of liability to tax. While this difference cannot change the test of value, it is not without effect upon a court's attitude in the application of the test. In a case of compensation, doubts are resolved in favour of a more liberal estimate, in a revenue case, of a more conservative estimate. " 13. In the present case also, the determination of the value for wealth-tax purposes, as we have seen above, was a matter of routine without reference to complete data available. Moreover, the wealth-tax is a repetitive tax, whereas the valuation ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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