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Issues: Valuation of immovable property for assessment years 1972-73 to 1976-77
Analysis: The appeals before the Appellate Tribunal ITAT Gauhati involved the valuation of an immovable property owned by the assessee, a three-storied R.C.C. building in Gauhati. The valuation dates for the assessment years ranged from 1972-73 to 1976-77. The common point for all appeals related to the valuation of this property, which was initially valued by the WTO at varying amounts for each assessment year. The WTO valued the property at different amounts for each assessment year, with the valuation ranging from Rs. 3,19,890 to Rs. 3,55,400. The assessee, however, had initially shown the valuation at a significantly lower amount of Rs. 1,27,498. Subsequently, the Asstt. Valuation Officer of the IT Department valued the property at Rs. 3,55,400 after considering comments and objections from the assessee. The assessee presented two sets of valuation reports by a registered valuer, showing varying valuations of Rs. 1,30,100 and Rs. 1,88,900. The AAC granted a partial relief in valuation but upheld the Departmental valuer's valuation method. The assessee, still dissatisfied, appealed arguing that the property's valuation should have been based on the rental method due to tenant occupation and Rent Control Act applicability. The Revenue supported the lower authorities' orders, emphasizing the property's advantageous location and commercial use. The Tribunal scrutinized all valuation reports, highlighting discrepancies in the assessee's reports and the Departmental valuer's approach. The Tribunal noted that for rented properties subject to Rent Control Act, the income method valuation was appropriate, not the land and building method used by the Asstt. Valuation Officer. Ultimately, the Tribunal determined the property's valuation using the rental yield method, considering the property's location, rental income, and facilities. The annual rental yield was calculated, and the capital value was determined at Rs. 2,40,000, directing the WTO to adopt this valuation for all the assessment years. Consequently, the appeals by the assessee were partly successful, and the valuation was set at Rs. 2,40,000 for all the assessment years under appeal.
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