TMI Blog1997 (4) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... a factory building. The said factory building, it is not disputed, is used by the assessee for carrying on its manufacturing activity. The Directorate of Industries considered the application of the assessee that was made sometime in August, 1976, with reference to the provisions of Land Acquisition Act, 1973, especially with reference to s. 20(i) of the said Act, permitting the land to be retained by the assessee. The order that was so passed contained a particular cl. No. 4, which is reproduced below for the sake of facility : "(4) Notwithstanding anything contained in any of the preceding clauses of this order if the said person desires to transfer the exempted land (with the buildings thereon, if any) to any other person, by way of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the gross lease receipt per annum on lease of 11,642 sq. mts. at Rs. 3,75,930. He claimed 5 per cent from the gross rental towards collection charges and on the balance lease rental he capitalised the same at 12 per cent and returned the value of Rs. 29,76,125. From the balance land of 5,894 sq. mts. he deducted the area of the land under the building at 1,714 sq. mts. giving the figure of remainder building at 4,180 sq. mts. Because of the provisions contained in the Urban Land Ceiling Act, limiting the compensation payable for such excess land at Rs. 10 per sq. mt., he took the value of 4,180 sq. mts. at Rs. 10 per sq. mt. giving the figure of Rs. 41,800. The matter was referred to the Departmental Valuation Officer (DVO). The DVO took ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r cent claimed by the assessee. Insofar as the value of the excess land, which was declared by the assessee at Rs. 41,800, but adopted at the market rate by the DVO, he considered the plea of the assessee that the land is covered by the provisions of s. 20 of the Urban Land Ceiling Act, which allows the compensation at Rs. 10 only per sq. mt. He considered the plea of the assessee that certain portion of the land had to be kept vacant, but he held that the other land could be used for this purpose. He accordingly upheld the order of the DVO on this point. The plea of the assessee in appeal before us in regard to the land that was leased to the extent of 11,642 sq. mts. was limited to the consideration of interest at the rate of 12 per cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the land which are covered by nullah, high tension wires, etc. the Act provides to the extent of 25 per cent of FSI on the remaining land and thereby he insisted that the balance land has higher value. He submitted that the value adopted on the basis of actual sale consideration in the year 1983 was reasonable. 5. The rival contentions in regard to the above have been very carefully considered. It is an accepted position that the authorities governing the Land Acquisition Act has permitted the retention of the land of the assessee by noting the total area of the land at 17,536 sq. mts. and allowing exemption of 14,121 sq. mts. The exempted land is 4,692 sq. mts. taken as per statutory regulation, 9,854 sq. mts. covered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest on deposits at 12 per cent for asst. yrs. 1988-89 and 1989-90 and at 15 per cent for asst. yrs. 1990-91 and 1991-92. Insofar as the collection charges are concerned, no further relief is called for. As far as the rate of capitalisation is concerned, we would accept the rate of 12 per cent sought for by the assessee for the only reason that the assessee could have insisted upon taking the value at Rs. 10 per sq. mts. Insofar as the land which is in excess, but under the occupation of the assessee, in our view, the plea of the assessee that it could be adopted at Rs. 10 per sq. mt., the maximum amount of compensation which could be realised from the Government, is a very reasonable proposition. Similar view has been taken by the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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