1976 (11) TMI 90 - AT - Wealth-tax

Summary

Issues Involved:
1. Valuation of agricultural lands owned by the assessee in village Nangal Dewat.
2. Valuation of non-agricultural land owned by the assessee inside the village.

Detailed Analysis:

1. Valuation of Agricultural Lands:

The primary dispute in these appeals revolves around the valuation of agricultural lands owned by the assessee in village Nangal Dewat for the years 1970-71 to 1973-74. The Department contested the Appellate Assistant Commissioner's valuation of the lands at Rs. 8,800 per bigha for category 'A' land, Rs. 8,400 per bigha for category 'B' land, and Rs. 8,000 per bigha for category 'C' land. The Wealth-tax Officer (W.T.O.) had valued the lands at Rs. 40,000 per bigha, citing several grounds for this valuation, including the fact that the assessee had claimed compensation at the rate of Rs. 40,000 per bigha and instances of higher sales in the same village.

The Appellate Assistant Commissioner, however, found the W.T.O.'s valuation to be excessive and not based on reliable instances. He noted that the land acquisition authorities had awarded compensation at different rates for different categories of land, and there had been an upward trend in land values between 1964 and 1970. He thus estimated the value of the lands based on a 33.33% increase over the period, resulting in the valuations mentioned above.

The Department argued that the Appellate Assistant Commissioner had assigned arbitrary values and that the compensation awarded by the Land Acquisition Authority was not final, as it was subject to further litigation. They contended that the W.T.O.'s valuation was justified and necessary to safeguard the interest of the revenue.

The Tribunal concluded that the values assigned by both the W.T.O. and the Appellate Assistant Commissioner were arbitrary. It held that the market value should be based on the compensation awarded by the Land Acquisition Controller, which was Rs. 6,600 per bigha for category 'A' land and Rs. 5,500 per bigha for category 'B' land. These rates would be revised depending on the final outcome of the ongoing litigation regarding the land acquisition. This approach was deemed fair and just, adequately safeguarding the Department's interests in case of enhanced compensation.

2. Valuation of Non-Agricultural Land:

The second issue concerned the valuation of 1 bigha and 8 biswas of non-agricultural land owned by the assessee inside the village. The W.T.O. had valued this land at Rs. 40,000, while the assessee disclosed its value as Rs. 1,000. The Appellate Assistant Commissioner found the W.T.O.'s valuation excessive but agreed that the land's value should be higher than the disclosed amount due to its location inside the village Abadi. He valued the land at Rs. 16,000.

The Tribunal reviewed the matter and concluded that the Appellate Assistant Commissioner's valuation was fair and reasonable, given the compensation rates awarded for agricultural lands in the area. Therefore, no interference was warranted in this valuation.

Conclusion:

In conclusion, the Tribunal partly allowed the appeals, setting the valuation of agricultural lands based on the compensation awarded by the Land Acquisition Controller and affirming the Appellate Assistant Commissioner's valuation of the non-agricultural land.