9911796707
|
Home
Issues involved: Determination of fair market value of property for income tax purposes based on different valuation methods.
Summary: The High Court of Punjab and Haryana heard Income-tax Appeals involving the sale of property shares in Amritsar City. The Inspecting Assistant Commissioner initiated acquisition proceedings based on a valuation officer's report, determining the fair market value of the property. The transferees contested this valuation, leading to the Tribunal's decision to calculate the fair market value differently, resulting in the property not being considered acquirable. The revenue appealed this decision, arguing that the Tribunal should have valued the property based on the cost of land and building, as indicated by a report from the transferees' valuer. However, the Court found that a previous judgment's principle, based on the return from landed property, supported the Tribunal's valuation method of 12 times the annual rent, considering the prevailing interest rates. Additionally, the revenue's reliance on a Supreme Court case regarding land and building valuation was dismissed by the Court, which upheld the Tribunal's approach of determining fair market value based on the return accruing to the owner. Consequently, the Court found no merit in the appeals and dismissed them.
|
