TMI Blog1980 (7) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... acks the AAC's order in respect of his decision vacating the disallowance of Rs. 50,000. 2. Reproduction of para 1 of the assessment order under s. 15(3) of the WT Act, 1957, hereinafter called the Act, for the asst. yr. 1973-74 gives the necessary sequence and projects that the litigation which has travelled to us by way of the Revenue's appeals was avoidable: "The assessee originally filed his return of wealth for the above asst. yr. 1973-74 on 12th Sept., 1973. It was subsequently revised on 7th March, 1975 and again it was revised on 29th Aug., 1975. Notice under s. 16(2) was issued and complied with by Shri M.A. Bakshi, counsel of Shri Anwar Aftab. The value of the Pamposh Building had been declared Rs. 4,93,500. The WTO felt that the Bldg. had been very much undervalued. Hence, the assessee was required to get the Bldg. evaluated from a registered valuer, who valued the Bldg. at Rs. 5,27,000. It was felt that the Bldg. was still undervalued and was hence referred to the Deptl. valuer at Amritsar. The departmental valuer was of the opinion that since the Bldg. was completely let out, the only method to be adopted for the valuation was rent capitalisation method. Hence, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the return made by the assessee under s. 14 or s. 15, he shall pass an order in writing to that effect and send a copy of his order to the WTO and to the assessee. (4) Where the Valuation Officer is of opinion that the value of the asset is higher than the value declared in the return made by the assessee under s. 14 or s. 15 or where the asset is not disclosed or the value of the assets is not declared in such return or where no such return has been made, the valuation officer shall serve a notice on the assessee intimating the value which he proposes to estimate and giving the assessee an opportunity to state, on a date to be specified in the notice, his objections either in person or in writing before the Valuation Officer and to produce or cause to be produced on that date such evidence as the assessee may rely in support of his objections. (5) On the date specified in the notice under sub-s. (4) or as soon thereafter as may be after hearing such evidence as the assessee may produce and after considering such evidence as the assessee may produce and after considering such evidence as the Valuation Officer may require on any specified points and after taking into account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not given any reasons for rejecting the valuation certificate produced by the registered valuer. From the assessment orders, it is quite clear that the reasons for rejecting the valuation made by the registered valuer has not been given in the wealth-tax assessment order. Nowhere the WTO has given the proper opportunity to the assessee to explain his position and explain that why valuation of the departmental valuer is not correct. As per order sheet entry, it is seen that the entire proceedings have been discussed on 8th March, 1978. On 7th March, 1978, the order-sheet entry speaks 'Refer the case to Valuation Cell.' Before me, the appellant has raised basic objection to the valuation report where he has stated that the departmental valuer has calculated repairs at Rs. 7,000 as actual working of Rs. 12,000 and collection charges have also been calculated at Rs. 2,200 as against Rs. 4,320. He has also challenged the basis of capitalisation at Rs. 11,925 which, according to the assessee, is quite high. The counsel has quoted the case of Shri Jaswant Rai vs. CIT 107 ITR 477 in which Their Lordships of the Bombay High Court have held that if there are two valuations the valuation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sons for the same. Keeping in view the above, the correct valuation of the property will be as follows:— Gross ALV . 72,000 Less— 1/6th for repairs 12,000 . Property tax 5,080 . Insurance 7,200 . Collection charges 4,320 . . . 28,600 . . 43,400 Since the deductions have been shown at Rs. 21,600 by the VO, I restrict the valuation to this amount. The valuation officer has given finding that the entire building is tenanted and therefore, only rent capitalisation method should be adopted. I am of the opinion that when a building comes in adverse situation the reasonable valuation will be the average of construction method and the rental method. I, therefore, uphold the valuation shown by the registered valuer at Rs. 5,27,000 as reasonable for all the three assessment years. The appellant thereby gets a relief of Rs. 1,60,000 in each of the three years on this account". From the above, we notice two important factors very intelligently taken notice of by the AAC which are that the repairs were to be taken at 1/6th and there seems to be no justifica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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