9911796707
TMI Blog1981 (4) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... time of the assessment, the WTO did not accept the valuation shown for the assessment year 1974-75 and enhanced it to Rs. 2 lakhs on agreed basis and accepted the valuation shown for the subsequent years. The assessments were completed on30-3-1978. The Commissioner initiated proceedings under section 25(2) as he considered these orders to be erroneous insofar as these are prejudicial to the interest of the revenue and passed a consolidated order dated20-2-1980which is challenged now before us. 3. Shri C.S. Aggarwal, the assessee's learned counsel, challenged the order of the Commissioner on the ground that the findings arrived at by him are untenable, unjustified and not based on materials on record. The assessments in these cases were c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cost of investment including the land came to approximately Rs. 1,65,000 and the net value on the basis of the annual letting value on a gross receipt of Rs. 30,780 came to approximately Rs. 2,69,328 on the basis of multiple of 12 on net annual value of Rs. 22,444 (Rs. 30,780 less deductible allowance=net value of Rs. 22,444), the Commissioner was not justified in assuming that there was prejudice to the interest of the revenue in these cases. Since, there was absolutely no basis for the Commissioner to assume jurisdiction in these cases, his orders are liable to be cancelled. 4. On the other hand, Shri B.L. Chhiber, the learned departmental representative, supported the orders of the Commissioner. According to him, the Commissioner need ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which would bring the net value of the property to a much higher figure than assessed by the WTO. However, the Commissioner did not bring out the circumstances under which this multiple of 16 times should be applied in preference to lower multiple applied in this case. Since the net value of the property assessed by the WTO for these two years compared favourably with the cost of investment and the value determined on net rental basis by applying a multiple of 12, the orders cannot be said to be prejudicial to the interest of the revenue without any specific instance on record of higher multiple adopted in the cases of other assessees in the area. Since the probability is unfounded and not supported by any specific instances, we are of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
