9911796707
TMI Blog1988 (8) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... lso tenanted, whereas other property at Muzaffarnagar is a plot of land which is given on lease by the assessee for 99 years to the HUF of her son For the sake of convenience we first take up Revenue's appeals, in which the only issue is regarding addition on account of reversionary value of land in respect of a tenanted property a Muzaffarnagar. This dispute is raised only for three assessment years, viz., 1982-83, 1983-84 and 1984-85. One of the properties belonging to the assessee at Muzaffarnagar was tenanted with State Bank ofIndiafor first of the three years under consideration The property in question was on the same rent whereas due to demolition of certain portion of the said property and renovation and additions, the rent was enha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry value as suggested by the Valuation Officer. Simply because a portion of it was demolished and reconstructed and renovated in subsequent years, could not give any justification for the Valuation Cell for making any addition on account of reversionary value of the land. The assessee comes from Muzaffarngar and its jurisdictional High Court in the case of CWT vs. Ram Saran Kajriwal (1987) 64 CTR (All) 32 : (1987) 168 ITR 485 (All) have held that once the properties are valued by rent capitalisation method, no addition on account of reversionary value could be made unless the property was very old and obsolete, in the following words; "Held that the valuation of assets had to be made in each case with due regard to the conditions of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs viz., Willow Bank, Theanat Lodge and White House, all situate in Mussoorie. The assessee's contention was that multiple of 100/9 should be applied whereas both the lower authorities, the WTO and the CWT (A) applied multiple of 100/8 Both the sides the departmental representative on the one hand pointed out multiple of 14 times as per case reported in Sabita Mohan Nagpal vs. CWT (1986) 53 CTR (Raj) 332 : (1986) 160 ITR 751 (Raj) whereas learned counsel for the assessee pointed out that multiples of 8 to 10 having been applied There is no dispute about the fact that all the three properties are situated in Mussoorie. They are situated on hill station and tenants are very old. Undoubtedly as per rent capitulation method, it is the return o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected to be made by adopting the multiple on the basis of 100/9 as in respect of Mussoorie properties. 7. Now in ground No. 2.(c) the dispute is raised about the valuation of a land measuring 3894 sq. yds. underrneath Kamal Theatre, which was leased out through registered deed to Shri V.K. Singh HUF There is no dispute about the fact that even valuation of lease hold rights have been added to the wealth of Kunwar V.K. Singh HUF. It is also true that lease deed is registered for 99 years The learned authorised representative for the assessee submitted that the CWT (A) has confirmed the valuation of the said plot at Rs. 9,23,500 for asst. yr. 1982 83, Rs. 10,15,850 for asst. yr. 1983-84 Rs. 11,08,200 for asst. yr. 1984-85 and Rs. 12 lacs fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by Revenue are ridiculously high Under the circumstances, we restore this matter pertaining to the valuation of the said property i.e. land under-neath Kamal Theatre to the file of the WTO who is directed to readjudicate the valuation of the said land de novo after giving a chance to the assessee to meet the valuation assigned by the District Magistrate. He would see to it whether the valuations given by the District Magistrate are in respect of leased out property or open land without any encumbrances. In a very recent judgment Their Lordships of Hon ble Supreme Court have given very useful guidelines for valuation of immovable properties, especially in respect of lands where plus minus points are given for suitable valuation for the gui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rgeness of area 2. Proximity to a road. 2. Situation in the interior at a distance from the road. 3. Frontage on a road. 3. Narrow strip of land with very small frontage compared to depth. 4. Nearness to developed area. 4. Lower level requiring the depressed portion to be filled up. 5. Regular shape. 5. remoteness from developed locality. 6. Level vis-a-vis land under acquisition 6. Some special disadvantageous factor which would deter a purchaser. 7. Special value for an owner of an ad-joining property to whom it may have some very special advantage . (15) The evaluation of these factors of course, depends on the facts of each case. There can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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