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The Assistant Commissioner of Wealth Tax, Circle – 1, Jalgaon (Maharashtra) Versus Shri Pradeep Dinkar Nehete

2016 (4) TMI 848 - ITAT PUNE

Reference the matter to the DVO for proper valuation of the properties - Whether the Commissioner of Wealth Tax (Appeals) has erred in placing reliance on the valuation given by the assessee in the return based on Govt. ready reckoner by rejecting the valuation given by the Approved Valuer? - Held that:- No error has been committed by the Commissioner of Wealth Tax (Appeals) in directing the Assessing Officer to obtain the report of DVO to ascertain the fair market value of properties under ques .....

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ioned 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 as .....

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Act. - WTA Nos. 02 to 06/PN/ 2015 - Dated:- 19-2-2016 - SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM For The Assessee : Smt. Deepa Khare For The Revenue : Shri Hitendra Ninawe ORDER PER VIKAS AWASTHY, JM : These set of five Wealth Tax Appeals for the assessment years 2005-06 to 2009-10 by the Revenue are directed against the orders of Commissioner of Wealth Tax (Appeals)-2, Nashik for the respective assessment years. All the impugned orders are dated 30-01-2015. Since, the facts in the presen .....

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he 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 circumstance .....

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nating 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 Wealth 2005-06 13-01-2012 ₹ 25,89,689/- 2006-07 13-01-2012 Rs. 35,76,354/- 2007-08 13-01-2012 ₹ 44,15,539/- 2008-09 13-01-2012 ₹ 49,50,420/- 2009-10 13-01-2012 ₹ 53,70,749/- The assessments were made in all the impugned assessment years u/s. 16(3) r.w.s. 17 of the Wealth Tax Act, 1957 (hereinafter refer .....

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perties declared by the assessee as per Govt. ready reckoner. The details of the said three properties are as under: Sr. No. Description Purchase date & value 1 Shop No. 4, S. No. 591/6B, Ganesh Wadi, Jalgaon Out of division of family in June, 1992 2 a. Plot No. 4 to 14 at G. No. 23/3B, Khedi Village, Jalgaon July, 2003 ₹ 3,28,130/- b. Plot No. 21 to 25 at G. No. 23/4, Khedi Village, Jalgaon July, 2003, ₹ 3,45,320/- 3 Agri. Land No. 57/5 & 6 at Khedi Village, Jalgaon (1/4th S .....

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The DVO submitted the valuation report on 10-12-2014 to the Assessing Officer. The Assessing Officer without commenting on the report of DVO forwarded the same to the Commissioner of Wealth Tax (Appeals). For the sake of convenience, we have taken the figures from assessment year 2005-06. Similar additions were made by Assessing Officer, by adopting corresponding value of properties in other assessment years under appeal. The comparative analysis of the different rates (in assessment year 2005-0 .....

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peals) 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 Asse .....

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sessing Officer in adopting the value of properties declared in the valuation report furnished by the assessee to the bank. The ld. DR contended that a perusal of the documents on record clearly show that the assessee has deliberately offered less value in respect of the three properties i.e. Shop No. 4, Ganesh Wadi, Jalgaon, Plot No. 4 to 14 and Plot No. 21 to 25, Khedi Village, Jalgaon and Agricultural land No. 57/5 & 6 at Khedi Village, Jalgaon. The assessee cannot take two different valu .....

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reference can be made to DVO only during assessment proceedings by the Assessing Officer. The Commissioner of Wealth Tax (Appeals) cannot make reference to DVO for the valuation of the properties. 5. On the other hand Smt. Deepa Khare appearing on behalf of the assessee supported the findings of Commissioner of Wealth Tax (Appeals) in adopting value of properties declared by the assessee on the basis of Govt. ready reckoner. The ld. Counsel for the assessee submitted that the assessee is one of .....

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lth. The Assessing Officer accepted the valuation of two properties based on Govt. ready 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 .....

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ok. 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 registered valuer has not given any sale instances or measured the built up area rate. It is not clear from the report as to how he has arrived at the final built up area rate. Thus, no reliance can be placed on the r .....

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Officer, 21 ITD 436 (Mum). 6. We have heard the submissions made by the representatives of rival sides and have perused the orders of the authorities below. We have also considered the decisions on which both the sides have placed reliance and the report of DVO. The issue raised in the present set of appeals is; Whether the Commissioner of Wealth Tax (Appeals) has erred in placing reliance on the valuation given by the assessee in the return based on Govt. ready reckoner by rejecting the valuati .....

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he basis of Govt. ready reckoner and adopted the value as per the valuation report of the Approved Valuer. The contention of the assessee is that valuation report from the Approved Valuer was obtained by the assessee for the specific purpose of taking loan for the company in which the assessee was a Director. The assessee has offered his properties as co-lateral security for securing the loan from the bank. The value of the properties shown in the valuation report given by the Approved Valuer we .....

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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 .....

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brought on record by the A.O. in support of his contention that the construction of a building is permissible or not. However, the appellant has not obtained any NA permission of the said land for NA use and not used for non agricultural purposes. 9.12 Thus, taking into account of the facts of the case and considering the retrospective amendment by Finance Act, with effect from 01-04- 1993, I hold that the said land is an agricultural land in the record of government and it is under cultivation .....

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the Tribunal while adjudicating the appeal of the assessee on similar facts rejected the report of Approved Valuer, as it was lacking the details and the property was valued almost three times of the actual valuation. 10. The ld. Counsel has placed reliance on the decision of Hon'ble Madras High Court in the case of Commissioner of Income Tax Vs. Prasad Productions (P.) Ltd. (supra) to strengthen her argument that no error has been committed by the Commissioner of Wealth Tax (Appeals) in di .....

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