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Issues: Departmental appeal on valuation of immovable property, consideration of life interest in property, actuarial basis for valuation, deduction for life interest, correctness of capitalised value, market value determination.
The Department filed an appeal challenging the assessment order on the valuation of immovable property located at 29/IB & 30, Armenian Street, Calcutta. The grounds of appeal included contentions that the assessment was arbitrary and wrong, the valuation of the property was incorrect, and the life interest of Smt. Ruby Mitter was not duly considered. The Department argued that the valuation should have been done on an actuarial basis due to the presence of life interest and reversionary interests, which was not done in this case, rendering the valuation illegal and incorrect. The assessee, an individual owner of the property, contended that the valuation by the WTO did not appropriately consider the life interest of Smt. Ruby Mitter in the property. The WTO capitalized the net maintainable rent after deducting outgoings but not accounting for Smt. Ruby Mitter's interest, resulting in a higher valuation. On appeal, the AAC adjusted the valuation by deducting 1/3rd of the gross rent as interest for Smt. Ruby Mitter, resulting in a lower capitalised value. The assessee's counsel supported the AAC's order, citing relevant documents and past assessment orders related to Smt. Ruby Mitter's tax treatment. During the proceedings, the Departmental Representative referred to a specific rule and contended that the deduction allowed for Smt. Ruby Mitter's life interest was not in compliance with the rule, advocating for upholding the WTO's valuation. In contrast, the assessee's counsel presented arguments and evidence supporting the AAC's adjusted valuation, highlighting the correct treatment of Smt. Ruby Mitter's interest in the property based on past assessments and the Deed of Settlement. The AAC's determination of the market value was upheld, considering Smt. Ruby Mitter's life interest in the property as a charge affecting the valuation. The AAC's approach of calculating the maintainable rent by excluding outgoings, including Smt. Ruby Mitter's interest, was deemed appropriate. As a result, the capitalised value based on this adjusted calculation was found to be correct and was maintained, leading to the dismissal of the Department's appeal.
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