TMI Blog2005 (2) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the authority in a proceeding under the Income-tax Act. – Held that Tribunal had the responsibility to value the property following the accepted principles of valuation - - - - - Dated:- 4-2-2005 - Judge(s) : D. K. SETH., SOUMITRA PAL. JUDGMENT The present appeal has been filed by the assessee against the order passed by the learned Income-tax Appellate Tribunal for the assessment year 1999-2000. The appeal was admitted in terms of the following questions: (i) Whether, upon a true and proper construction of the final decree dated February 10, 1986, in Title Suit No. 84 of 1956 and the compromise petition on the basis of which the same was passed, the Tribunal was justified in law in holding that the sum of Rs. 1,00,000 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nreliable and without following the principles of valuation established in law. In such a situation, the valuation is to be made on the strength of the comparable units of the neighbouring area or adjacent to the properties. The same having not been done, it is very difficult to assail the finding of the Tribunal in rejecting the valuation made by the valuer. Mr. Deb further contended that there was an admission by the parties in the suit for partition by reason whereof the valuation accepted in the document for partition cannot be overlooked and would be binding on the parties and the onus would shift on the assessee being a party to the compromise admitting the valuation to establish otherwise than what was admitted. Mr. Deb relied on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is proposition of fact is not in dispute. Though this might be binding on the parties, it cannot be treated to be an admission with regard to the valuation of the property as of April 1, 1981. The valuation of the suit property was being assessed for the purpose of determining capital gains. Therefore, the admission would not be relevant for the purpose of arriving at the valuation of the property as of April 1, 1981, which was to be assessed according to the principle of valuation either through appointing a valuer or by the authority. It is not in dispute that the valuation made by the valuer is simply an ordinary piece of evidence. It does not carry any weight more than that. The authorities are free to agree with the finding of the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be assessing 13 cottah odd for the whole property where the valuation of one cottah would come to around Rs. 7,000/8,000 approximately. Therefore, this valuation arrived at by the learned Tribunal cannot be justified. It further appears that this valuation was submitted by the assessee in his wealth-tax returns for the assessment year 1987-88 and was accepted by the Wealth-tax Officer. The same valuation was also submitted in the return for the assessment year 1990-91 by the assessee, which was subsequently reopened by the Wealth-tax Officer but ultimately the Wealth-tax Officer had accepted the valuation of Rs. 15,44,700. Therefore, it appears that there were some materials to arrive at the valuation as in 1987-88 as well as in 1990-91, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed at, though not on a sound proposition by Talbot and Co., Rs. 5,95,800 could be too low a valuation to be discarded altogether. In the absence of any other material and when the Tribunal had not adopted the process of remanding the matter and had not valued the property according to the well-accepted principle of valuation, there is no alternative but to accept the valuation made by the valuer which was on record, though we do not approve the method of comparison adopted by the valuer, in comparison to the valuation of the same property accepted by the Wealth-tax Officer for the year 1990-91. At the same time, a property at Hindustan Road is also not less valuable from the standpoint of materials apparent on the record that this property ..... X X X X Extracts X X X X X X X X Extracts X X X X
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