Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Wealth-tax Wealth-tax + AT Wealth-tax - 1979 (11) TMI AT This

  • Login
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

1979 (11) TMI 125 - AT - Wealth-tax

Issues: Valuation of properties for assessment years 1971-72 and 1972-73

Analysis:
The judgment involves two appeals concerning the valuation of properties for the assessment years 1971-72 and 1972-73. The main dispute revolves around the valuation of two properties, namely 39, Strand Road, Calcutta, and 83-85, Netaji Subhas Road, Calcutta, where the assessee holds an equal share with three other individuals. The variance in valuation arises from the different multiples adopted by the assessee's valuer and the departmental valuation officer.

The representative for the assessee argued that the valuation of the share in the properties should be consistent across all co-sharers based on previous assessments. Additionally, the age of the properties and the number of tenants residing in them at low rents were highlighted to justify a lower valuation multiple. Reference was made to various court decisions discussing valuation principles and the concept of "hope value" in property valuation.

On the other hand, the department's representative supported the valuation by the WT authorities and emphasized the binding nature of the valuation officer's assessment. Arguments were presented regarding the investment nature of immovable properties, inflation hedging, and social prestige associated with property ownership.

After considering the submissions, the tribunal found merit in the assessee's arguments. It was noted that the valuation accepted for the share of other co-sharers should apply uniformly to the assessee's share as well. The tribunal also agreed that the higher multiple used by the WT authorities was not justified given the age and tenancy status of the properties. Ultimately, the tribunal directed the WT to adjust the valuation of the assessee's share in the properties to Rs. 1,52,500, instead of the higher amount determined by the authorities, and instructed to modify the assessments accordingly.

In conclusion, both appeals were allowed in favor of the assessee based on the considerations of uniform valuation for co-sharers and the appropriateness of the valuation multiple used by the authorities.

 

 

 

 

Quick Updates:Latest Updates