9911796707
TMI Blog1988 (10) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... erty is situated at 28, Vijaya Raghavachari Road, T. Nagar, Madras. For asst. yrs. 1980-81 and 1981-82 the assessee who is a non-specified HUF returned its value at Rs. 1,93,000. In the course of assessment proceedings the assessee has filed a registered Valuer's Report (Sri K.G. Subramanuam Associates) dt. 21st Dec., 1983 estimating the value of the property at Madras at Rs. 2,73,000 as on 31st March, 1980 and Rs. 2,77,000 as on 31st March, 1981. The WTO felt that even the estimated value by the approved valuer filed on behalf of the assessee was also on low side in view of abnormal increase in the value of urban property particularly in cities like Madras. Therefore, he referred the question of valuation of this property to the Valuation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imated value of the Madras property and the valuation cell to whom the question of valuation was referred, estimated its value by land and building method. 2. Aggrieved against both the assessments the assessee went up in appeal before the AAC, Ananthapur. The AAC Ananthapur in his impugned orders dt. 15th June, 1987 clearly found that the Madras property is a residential house which is fully let out. He also found that there is a litigation between the assessee and the tenant. He further found that that the Madras Rent Control Act provisions are applicable to the impugned building at Madras. He further found that it is anybody's guess as to when the assessee would be able to regain possession of his property. He felt that since the prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment years under consideration as the value of the Madras property. In view of his clear finding that the said property is fully tenanted, that it is governed by the Madras Lease Rent and Eviction Control Act, that there is litigation between the assessee and the tenant occupying the said property for eviction and that getting possession of the property after evicting the tenant is a cry in wilderness and nobody would be able to say when he would get such a vacant possession. 5. It is also submitted to us on behalf of the assessee by Shri M.J. Swamy, learned Advocate for the assessee that after giving effect to the AAC's order the value of the Madras property came to Rs. 92,500 for the asst. yr. 1980-81 and Rs. 1,22,950 for asst. yr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der r. 1BB of WT Rules while valuing a residential property and while exercising his powers under s. 16A(5) of the WT Act. What is the true nature and relevant scope of s. 7(1) r/w r. 1BB of the WT Rules on one hand and s. 7(3) r/w r. 16A(5) of the WT Act? Now the solution to this question which is primarily involved in this appeal appears to have been found out by the Hon'ble Gujarat High Court in CWT vs. Kasturbhai Mayabhai. At p. 109 of the head note of the decision gives out the following decision which is relevant for our purposes: "Though sub-ss. (3) and (4) of s. 7 which begin with a non obstinate clause have overriding effect on sub-s. (1) of s. 7 r/w r. 1BB, once a reference is made to the Valuation Officer, the asset has to be v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Special Bench on the subject: "On the contrary this rule was clearly brought into effect to give a benefit to owners of residential properties by adopting a lesser value than what would be arrived at on the principle that it was sold in the open market on the valuation date. On this ground alone, that the valuation by applying r. 1BB comes to much less than by ignoring the rule, the said rule cannot be ignored by the WTO. Under the circumstances, therefore, we hold that the WTO who had no opportunity to consider r. 1BB when he made the reference under s. 16A because the said rule did not then exist, must now reconsider the question whether a reference under s. 16A could be validly made keeping in view r. 1BB and only if he comes t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... far as the question of higher value being returned by the assessee and a lower value being arrived at by applying r. 1BB is concerned, we agree with the learned counsel for the assessee and the intervene that an assessee has no right to contract out of the statute and he cannot offer to be assessed on a higher valuation than arrived at by applying r. 1BB in so far as it is an admitted fact that it is a self occupied property. The assessee had returned the valuation on the basis of the report of a registered valuer who had estimated the value at certain figures for different years. There is a positive concession given in respect of valuation of a residential property including self-occupied property by r. 1BB and if by taking advantage of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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