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TMI Blog2016 (4) TMI 848X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the Wealth Tax return or the one which he had declared before the bank/financial institution. 2. On the facts and in the circumstances of the case and in law, the Ld, CWT(A) -2, Nashik has erred in holding that the valuation shown by the assessee for the impugned properties were more accurate than the value determined by the DVO which was based on the stamp duty valuation over looking the fact that the assessee himself had presented the said valuation to the bank. 3. On the facts and circumstances of the case and in law, the order of the Ld. CWT(A)-II, Nashik be cancelled on the above issue and that of the A.O. be restored. 4. The appellant craves leave to add, alter, modify, delete amend any of the grounds at any stage of appellate proceedings. 5. The appellant prays to file any of the additional evidence appropriate to the grounds taken in appeal. Similar grounds have been raised by the Revenue in the appeals for all the impugned assessment years. 3. The brief facts of the case as emanating from record are: The assessee filed his return of Net Wealth for the impugned assessment years declaring total wealth as under: Assessment year Date of Return Total Weal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct matter of dispute are as under: Sr. No. Description Value as per Govt. ready reckoner as on 31.3.2005 Value as per D.V.O. Value adopted by A.O. 1 Shop No. 4, S. No. 591/6B, Ganesh Wadi, Jalgaon 3,21,907 4,25,582 51,70,518 2 a. Plot No. 4 to 14 at G. No. 23/3B, Khedi Village, Jalgaon 17,61,739 14,59,617 1,14,40,000 b. Plot No. 21 to 25 at G. No. 23/4, Khedi Village, Jalgaon TOTAL 20,83,646 18,85,199 1,66,10,518 The Commissioner of Wealth Tax (Appeals) after considering the report of DVO accepted the value declared by the assessee in respect of the above properties, as the valuation declared by the assessee was more than the value computed by the DVO. In respect of agricultural land, the Commissioner of Wealth Tax (Appeals) held that in view of amendment of section 2(ea) by Finance Act, 2013 w.e.f. 01-04-1993 the agriculture land is not an asset liable to Wealth Tax. The Commissioner of Wealth Tax (Appeals) accordingly directed the Assessing Officer to delete the addition made on account of under valuation of properties i.e. Shop No. 4, Ganesh Wadi, Jalgaon, Plot No. 4 to 14 and Plot No. 21 to 25, Khedi Village, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy reckoner, whereas, in respect of remaining three properties, the Assessing Officer adopted the value as per the valuation report given by the approved valuer. The ld. Counsel submitted that the valuation report of the Approved Valuer does not represent the fair market value, as it is not based on any sales transaction in the area. The value of properties as reflected in the Approved Valuer's report is highly exaggerated. The said valuation report was obtained for the specific purpose of securing more loan. The assessee during assessment proceedings had pointed the fact that the Approved Valuer's report does not show correct fair market value. The Assessing Officer in such situation ought to have referred the matter to DVO for determining the correct valuation of the properties in question. The ld. Counsel for the assessee referred to the report submitted by the DVO at pages 31 to 46 of the paper book. The ld. Counsel submitted that the value adopted by the DVO is based on the specific sale instances in the area, therefore the same is authentic and reliable. The DVO in his report has categorically stated that the report given by the registered valuer is without any basis. The reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 8. As regards Agricultural Land No. 57/5 & 6 at Khedi Village, Jalgaon (1/4th Share of assessee), the Commissioner of Wealth Tax (Appeals) excluded the same from the list of 'assets' with the following observations: "9.11 In view of the above facts, I am of the considered opinion that the said agricultural land having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly or in part. When the discretion which the original authority is vested with in relation to that assessment is a matter with regard to which it is open to the appellate authority to give suitable directions, we see no error in the order which the Commissioner had made. The Tribunal was wholly in error not only in entertaining the plea that was raised by the assessee which had persuaded the Commissioner to direct the Assessing Officer to refer the matter to the valuation cell, but in further proceeding to hold that the Commissioner did not have the power to do so." 11. In view of the facts of the case and the decisions discussed above 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. 12. In the result, the impugned orders are confirmed and the appeals of the Revenue are dismissed being devoid of any merit. 13. Before parting with the order we would like to record that unethical practices adopted by the assessee in obtaining inflated valuation of the properties from Approved Valuer to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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