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TMI Blog1976 (4) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... anchsheel Marge, New Delhi. For the purposes of determining the capital gain it became necessary to evaluated the value of the said three plots of land allotted to the assessee. The ITO estimated the value of these lands at the rate of Rs. 200 per sq. yd. On appeal the AAC of Income-tax determined the value of the land at Rs. 150 per sq.yd. On further appeals both by the assessee and the ITO the Tribunal in ITA Nos. 1737 and 1596 of 1974-75 dt.4th Dec., 1975came to the conclusion that the correct value of the land was to be taken at Rs. 105 per sq. yd. It may be mentioned here that the WTO had also adopted the value of the lands at Rs. 200 per sq.yds. for the assessment years under appeal. He stated that the facts of the case had been discussed in detail by him in his reasons stated in the asst. yr. 1962-63 and for the reasons stated in that assessment order, he would adopt the capital value of these three plots at Rs. 9,77,000 as against Rs. 1,14,050 declared by the assessee. He estimated the cost of construction of these plots as follows : 19. Sardar Patel Marg 2,68,935 20. Sardar Patel Marg 2,26,377 13. Panchsheel Marg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was also pointed out that the market value adopted by the Ministry of Works Housing was Rs. 175 per sq.yd. for purposes of determining the unearned increase. The AAC took the view that the market value of the land at the rate of Rs. 175 per sq. yd. which was the basis adopted by the Government was very fair and reasonable keeping in view the market price in the area. He therefore, took the market value of land at 13, Panchsheel Marg on the relevant valuation date at Rs. 175 per sq.yd. The area was 4368 sq.yds. and at the rate of Rs. 175 per sq. yd. its value came to Rs. 7,63,525. The AAC allowed deductions on account of premium paid to the Government at the time of allotment amounting to Rs. 54,037 and one half share of the Government at Rs. 3,54,744 and on that basis worked out the value of the land at Rs. 4,08,781 including the premium of Rs. 54,037. The cost of construction was estimated by him at Rs. 3,38,544. He allowed depreciation at the rate of 2 per cent for three years amounting to Rs. 21,600. Thus the value of the property as on31st March, 1964was worked out to Rs. 7,47,325. To this he added the value of the two properties at Rs. 6,80,744 and estimated the total valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000 and Rs. 6,60,800 respectively in the valuation reports submitted by him on10th Dec., 1975and August, 1975 respectively. The learned Counsel pointed out that the said market values were determined in respect of these properties by the Departmental valuer as on the date of sales of these properties on12th July, 1971and16th Sept., 1971. In view of this it was strongly urged by the Counsel that after allowing the unearned increase actually paid by the assessee to the Government the AAC was justified in accepting the value returned by the assessee in the revised returns on the basis of these sales. He further submitted that in the capital gains tax case of the assessee for the asst. yr. 1962-63 the Tribunal ultimately found that there was no capital gain as the value of the land was Rs. 105 per sq.yd. approximately which resulted in a loss. In regard to the third property, namely, 13 Panch Sheel Marg, the assessee s learned Counsel submitted that the value adopted by the AAC was 13 to 17 times of the admitted net ALV of this property whereas the Tribunal has applied a multiplier of 12 to the net ALV of various properties in Delhi. It was pointed out by the Counsel that these proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative cannot be a better index than the sale price of these properties themselves. As observed by the AAC there is no material to doubt the genuineness of the sale price mentioned in the sale deeds. As a matter of fact in the assessee s case relating to capital gains the Tribunal found that the value of the land determined by the ITO at Rs. 200 sq.yd. was on the high side and its proper value was Rs. 105 per sq.yd. was on the high side and its proper value was Rs. 105 per sq. yd. The valuation of these plots of land which were allotted to the assessee as a compensation for the acquisition of Pataudi House belonging to him was much less than the cost price. Although the value of these plots was indirectly determined but on that basis the value returned by the assessee for these plots and accepted by the AAC on the basis of the sale price of these properties is, in our opinion, fair and reasonable. Normally rental method is followed in determining the market value of a property which is wholly let out and is subject to Rent Control Act. In the present case however, the properties having been let out to the Embissies the rent received by the assessee would not be a true guide for dete ..... X X X X Extracts X X X X X X X X Extracts X X X X
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