1985 (1) TMI 121 - AT - Income Tax

Issues Involved:
1. Valuation of Bahadurgarh plot.
2. Valuation of half share in plot No. 12/75, Punjabi Bagh under the Urban Land (Ceiling and Regulation) Act, 1976.
3. Impact of Urban Land (Ceiling and Regulation) Act on the valuation of properties.

Issue-wise Detailed Analysis:

1. Valuation of Bahadurgarh Plot:
The first point concerns the value of the Bahadurgarh plot, which had been acquired by the Haryana Government on 18-2-1977, prior to the deceased's death. The accountable person argued that only the compensation for this land should be considered for its valuation. The Appellate Controller ignored the acquisition fact and upheld the valuation at Rs. 30,425, based on the prevailing price. The learned counsel for the assessee contended that the compensation amount should be considered, supported by the Land Acquisition Officer's certificate stating the land was acquired for Rs. 5,780. The Tribunal directed the Assistant Controller to verify the compensation amount and, if satisfied, to adopt that figure instead of the market value.

2. Valuation of Half Share in Plot No. 12/75, Punjabi Bagh:
The deceased owned half of plot No. 12/75, Punjabi Bagh, measuring 1,000 sq. yards. The accountable person valued it at Rs. 16,000, its purchase price in 1969. The Assistant Controller valued it at Rs. 350 per sq. yard, totaling Rs. 1,90,575. The accountable person argued that the property fell under the Urban Land (Ceiling and Regulation) Act, 1976, and its market value should consider the Act's provisions. The Appellate Controller reduced the value to Rs. 300 per sq. yard, acknowledging the Act's restrictions but allowed only a minor relief of Rs. 27,200.

3. Impact of Urban Land (Ceiling and Regulation) Act on the Valuation of Properties:
The Tribunal noted that the Urban Land (Ceiling and Regulation) Act's impact was not considered by the estate duty authority. The Act restricts holding vacant land beyond the ceiling limit of 500 sq. meters in Delhi. The Tribunal reviewed the Act's provisions, including sections 3, 4, 5, 6, 10, 11, 20, 21, and 26, which detail the restrictions and valuation methods for excess land. The Tribunal emphasized the need to determine if any part of the deceased's land was excess under the Act and if the Act's provisions depressed the land's value. The Tribunal found that the land at Punjabi Bagh, if combined with other lands owned by the deceased's family, could exceed the ceiling limit. The excess land should be valued considering the Act's restrictions, potentially at the cost to the deceased or compensation rates under the Act.

Conclusion:
The Tribunal directed the Assistant Controller to verify the facts and determine the actual excess land. For non-excess land, the value was set at Rs. 300 per sq. yard. The excess land should be valued at cost or compensation rates under the Urban Land (Ceiling and Regulation) Act. The appeal was allowed as indicated, with the matter remanded for final disposal by the Assistant Controller.

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