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Issues Involved:
Valuation of land u/s 27(1) of the Wealth-tax Act, 1957 for the assessment year 1977-78. Judgment Details: The assessee submitted two valuation reports for a plot of land, with disparities in values due to the Urban Land (Ceiling and Regulation) Act, 1976. The Wealth-tax Officer valued the land at Rs. 1,93,600, based on nearby land sale rates. The Appellate Assistant Commissioner reduced it to Rs. 77,000 due to the Act. The Tribunal further reduced it to Rs. 1,68,600, considering the Act's impact and nearby sale rates. The Tribunal's decision was challenged, arguing the valuation was based on comparable sales and the land's status under the Urban Land Ceiling Act. The Court noted that excess land under the Act cannot be freely sold, emphasizing the restrictions and prohibitions. The Court referred to a Madras High Court case, stating that valuation should consider restrictions, and the compensation under the Act was a justifiable basis for valuation. The Court emphasized that when land is in excess under the Urban Land Ceiling Act, valuing it as freely transferable would lead to undue taxation. It highlighted the importance of considering the land's status under the Act and the restrictions imposed. The Court concluded that the land should be valued at Rs. 77,000, as determined by the Appellate Assistant Commissioner, as the assessee did not dispute this valuation before the Tribunal. Separate Judgment by SHYAMAL KUMAR SEN J.: SHYAMAL KUMAR SEN J. concurred with the decision.
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