TMI Blog1995 (6) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... e authority, the assessee challenged the valuation. The learned CWT(A) accepted the contention of the assessee that the land rate should be adopted at Rs. 60 per sq. yard against the land rate adopted at Rs. 70 per sq. yard by the Valuation Officer. The learned CWT(A) also agreed to the allowance of higher depreciation. The learned CWT(A) accordingly determined the value of the cold storage at Rs. 71,78,691 at page 4 of the impugned order as against the value of Rs. 88,08,000 determined by the Valuation Officer. 4. Dissatisfied with the relief allowed by the first appellate authority, the assessee has come up in further appeal. 5. At the outset, Shri Sudhir Sehgal, the learned Counsel for the assessee, submitted that the valuation of the cold storage for assessment years 1979-80, 1980-81, 1981-82, 1982-83 and 1983-84 was shown respectively at Rs. 10,22,753, Rs. 10,22,753, Rs. 10,40,243, Rs. 10,40,243 and Rs. 10,40,243. It was submitted that the assessments were framed under section 16(3) of the Wealth-tax Act in which the valuation shown by the assessee was accepted by the department. It was pointed out that for assessment year 1984-85, as against the value of cold storage show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o him and the choice of method for determining the value of the property should be left to the assessee. It was, therefore, submitted that according to the profit method the value of the cold storage as worked out by the Departmental Valuation Officer himself would come to Rs. 17,07,450 which should have been adopted by the Assessing Officer/CWT(A) instead of higher valuation. 8. The learned Counsel for the assessee, however, filed additional grounds which read as under :--- " 1. That the valuation of the property in the name of M/s Punjab Cold Storage may please be made as per Schedule III of the Wealth-tax Rules. 2. That the principles concerning the valuation as laid down by the Supreme Court in the judgment in the case of CWT v. Sharvan Kumar Swarup Sons, dated 22nd of September, 1994 may please be applied in the case of the appellant." Since these grounds raise legal issues, these were admitted after hearing the learned representatives of the parties. 9. The submission of Shri Sehgal was that Schedule III of the Wealth-tax Act though came on the statute book w.e.f. 1-4-1989, it was retrospective in effect because the Schedule dealt with the method of valuation of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee, however, pointed out that in its recent judgment delivered on 22-9-1994 in the case of CWT v. Sharvan Kumar Swarup Sons [1994] 210 ITR 886, the Supreme Court had held that rule 1BB merely provides a choice amongst well-known and well-settled methods of valuation and thus the rule was essentially a rule of evidence as to the choice of one of the accepted methods of valuation in respect of certain kinds of properties with a view to achieving uniformity in valuation and avoiding disparate valuations resulting from application of different methods of valuation respecting properties of a similar nature and character. It was, therefore, submitted that in view of the decisions of the Supreme Court in the case of Sharvan Kumar Swarup Sons the decision of the Punjab and Haryana High Court in the case of Hira Lal Mehra would no longer hold the field. It was also submitted that the ratio of the Supreme Court decision regarding rule 1BB would be applicable even in respect of Schedule III to the Wealth-tax Act. 12. Shri Sehgal also drew our attention to 211 ITR (Statutes) 9 in which the Special Leave Petition of the Revenue in the case of CWT v. Siddharth Kasturbhai was dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made. The Valuation Officer himself has worked out the valuation of the cold storage by two methods, i.e., the land and building method and the profit method. It is not understood as to how he has discarded the value arrived at on profit method basis. In the case of Rai Agriculture Farm Cold Storage, we notice that the valuation has been worked out on profit method which is also a well-recognised method. The Punjab and Haryana High Court in the case of Jaswant Rai has held that in a situation where different valuations would result from different methods of valuation, it would be fair and proper that the benefit of the method which is most favourable to the assessee should be allowed to him and the choice of the method should be left to the assessee. It is also true that in the case of cold storage building the use is very restricted unlike other immovable properties which may be put to a number of uses. We, therefore, do not subscribe to the view of the learned D.R. that the land and building method should have been adopted in this case. As per the profit method, the valuation comes only Rs. 17,07,450 against the value of Rs. 12,51,956 shown by the assessee. At the most, therefo ..... 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