TMI Blog2020 (8) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... ent for ₹ 4,000/- per month with a rental advance of ₹ 2,00,000/- and therefore, it is proper to adopt the value on rent capitalisation method as per the provisions of the Wealth Tax Act. AO did not agree with assessees plea and proceeded to compute the capital gains based on the value shown by the stamp authorities and the valuation officer. Before us, the assessee pleads that the guideline value does not reflect the market value and by the time the valuation officer went for inspection, the property was already demolished and hence the valuation made by him cannot be considered as a scientific one - we find merit in the submissions of the assessee. Existence of rental agreement, the receipt of rent and rental advance is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.46 p/sq.ft. based on the sub-registrar s guideline value and re-worked the indexed cost of acquisition. Further, in respect of cost of the building, the Assessing Officer referred the property to the Valuation Officer and adopted the value determined by the Assistant Valuation Officer and re-worked the indexed cost of acquisition and then determined the long term capital gain in the respective assessee s hands. Aggrieved, the assessees filed appeals before the CIT(A). The CIT(A) dismissed the appeals. Aggrieved against those orders, the above assessee s are on appeal before us. 3. With regard to the value of the site, the Ld. AR submitted that the AO is not correct in adopting the value of site of 9234 sq.ft. as on 01.04.1981 at a l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he total area of the building was 200 sq.mts., half of the building was Madras Terrace Roof Construction and half RCC Construction etc and since the impugned property was fetching a rent of ₹ 4,000/- per month as per the rental agreement dated 06.03.1985, with a rent advance of ₹ 2,00,000/- etc, the Ld AR submitted that on the facts and circumstances, the value of thebuilding should be worked out as per part B of Schedule III of the Wealth Tax Act and accordingly pleaded to allow the respective assessee s appeal. Per contra, the Ld DR submitted that the Ld CIT(A) obtained a remand report from the AO , furnished a copy to the assessee and after considering their reply etc , upheld the orders of the AO and hence he supported th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gains based on the value shown by the stamp authorities and the valuation officer. Before us, the assessee pleads that the guideline value does not reflect the market value and by the time the valuation officer went for inspection, the property was already demolished and hence the valuation made by him cannot be considered as a scientific one. On these facts and circumstances of the case, wefind merit in the submissions of the assessee. The existence of rental agreement, the receipt of rent and rental advance is not disputed. Therefore, we are of the view that the value of the land and building should be determined on the basis of rent capitalisation method. The assessee has quantified the value at ₹ 8,28,750/-, which may be r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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