TMI Blog1971 (11) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... consists of some old buildings. The open land was let out to tenants who had been permitted to erect semi-permanent structures. The property was valued in a partition dated March 27, 1960, at Rs. 10,20,000. The assessee also relied upon an agreement under which the property was agreed to be sold for about seven lakhs of rupees some time in February, 1956, before the Wealth-tax Officer. The officer, however, found that the annual letting value of the property was Rs. 91,337 and rejecting the partition deed as well as the agreement as not affording a proper basis for arriving at value, he fixed the value at eighteen lakhs of rupees. On appeal, the Appellate Assistant Commissioner was also not willing to act on the basis of the agreement of 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accepted the position that the value of the buildings could be taken at Rs. 5,11,000. He, however, stated that the land should be valued at Rs. 23 per sq. yard. At that rate he arrived at the total value of Rs. 13,41,208 for the entire property and concluded that it would be fair to adopt a, value of Rs. 13.25 lakhs. On further appeal, the Tribunal held that the agreement of 1954 as well as the agreement of 1956 could not be relied on. They also stated that the valuation of the architects was without basis and could not be accepted. They, however, observed that as the net income was Rs. 97,840, the Appellate Assistant Commissioner's valuation of Rs. 13.25 lakhs postulated an yield of about 7.4 per cent. which was quite reasonable. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. The cost of the land and the super-structures may be determined separately and added. Or the capital value may be ascertained, with reference to the rental value. The valuers of the assessee adopted both methods and arrived at approximately the same figure. The Appellate Assistant Commissioner chose to adopt the first. method. He accepted the expert's valuation of the building, but chose to fix Rs. 23 per sq. yard as the value of the land. It is true that the value adopted by the expert is not binding on the officer, but in case he decides not to act upon that evidence and adopts another valuation, that valuation has to be on the basis of some material. In this case, as has already been observed, the order of the Appellate Assistant Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the lands and buildings separately. The Tribunal while referring to this method of valuation by the expert observed "that the expert had not cited any accredited authority in support of the method applied by them" and it had no rational basis. The learned counsel for the assessee drew our attention to the Park's Valuation Tables and stated that the expert adopted Rs. 10.64 as the proper multiple having regard to those tables, though it is not mentioned in the report that this multiple is based upon the Park's Valuation Tables. Sri Rama Rao, learned counsel for the respondent, did not dispute that, having regard to the admitted facts, nainely, that the future life of the buildings is 25 years and 7% would be a proper return, the proper multi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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