1987 (1) TMI 176 - AT - Income Tax

Summary

Issues: Valuation of Okhla plot, Valuation of property W-2/7, West Patel Nagar, New Delhi, Denial of claim under s. 33(1)(n) of the Act.

The judgment by the Appellate Tribunal ITAT Delhi-E involved the estate of a deceased individual, with the accountable person being aggrieved on three main issues. Firstly, regarding the valuation of the Okhla plot, it was noted that only Rs. 71,585 could be considered as an asset since the allotment of the plot had not been confirmed by the date of the appeal. The Tribunal directed that this amount be held as an asset belonging to the deceased's firm, rejecting the valuation of Rs. 1,00,000. Secondly, concerning the valuation of property W-2/7, West Patel Nagar, New Delhi, the Tribunal found that the property was acquired in a public auction for Rs. 5,70,000 before the death, and as the sale was confirmed by the High Court later, the fair market value remained the same. Thus, the Tribunal substituted the valuation of Rs. 6,00,000 with Rs. 5,70,000. Thirdly, the Tribunal addressed the denial of a claim under s. 33(1)(n) of the Act related to a property in East Patel Nagar, New Delhi. The Tribunal allowed the claim for deduction/exemption under the Act, citing a Circular from the CBDT. Ultimately, the Tribunal ruled in favor of the accountable person on all three issues, allowing the appeal.