9911796707
TMI Blog1995 (4) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... 1973 for Rs. 1,65,000 only. The property was given on rent to Consulate General of the Federal Republic of Germany having its office at "Hoechst House", Nariman Point, Bombay-400 021. As per agreement dt. 16th Sept., 1983 the assessee-lessor had given the show room on lease at the rate of Rs. 26,000 per month, i.e., Rs. 3,12,000 per annum. The lessee, i.e., Consulate General of the Federal Republic of Germany paid to the lessor before 2nd Oct., 1983 an amount of Rs. 15,60,000 being the advance rent for the lease period of five years. The lessee had further deposited with the lessor an amount of Rs. 15,500 as security deposit which still carry no interest at any time. As per cl. 11 of the agreement, the agreement was to expire on 30th Sept. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of vacant flats for valuation of this let out property. It was also submitted that from the asst. yr. 1989-90 Sch. III has been introduced which applies to all immovable properties. Relying on the decision in the case of Govind Hari Singhania vs. Asstt. CWT Anr. (1992) 104 CTR (All) 337 : (1992) 194 ITR 474 (All) it was submitted that the Sch. III being procedural will apply to the assessment years under consideration which were pending before the Assessing Officer or in appeal as on 1st April, 1989. It was argued that though the DVO is said to have valued the property on rent capitalisation method, but he has basically relied on the market value of comparable cases to arrive at the reversionary value of flat which is the major portio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had to find out what the premises would fetch if sold in the open market at the relevant valuation date. The DVO had also indicated the price which the premises if sold would have fetched in the open market. He further observed that the economic principle of demand and supply satisfied the reversionary method adopted by the DVO. The property is situate in the most important commercial place of Bombay and the value of the premises is increasing day-by-day. There is no vacant land left to construct multi-storeyed building. Analysing the terms of the lease agreement, the CWT(A) came to the conclusion that the DVO was justified in taking reversionary value of the property which will be reverted back to the owner on expiry of lease. He further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argument, he placed reliance on the decision in the case of CWT vs. Seth Gokuldas Pradeep Kumar (1994) 210 ITR 64 (Raj). According to the learned counsel, no reversionary value of land or property can be added to the value determined under rent capitalisation method. He placed reliance on the following decisions: (i) Aditya Narain Roy Anr. vs. CWT (1990) 183 ITR 175 (Cal); (ii) CWT vs. V.C. Ramchandran (1966) 60 ITR 103 (Mys); (iii) CIT vs. New India Construction Co. (1980) 17 CTR (Del) 223 : (1980) 123 ITR 68 (Del); (iv) Corporation of Calcutta vs. Smt. Radmadebi AIR 1962 SC 151. In view of the above decisions the learned counsel argued that the reversionary value of the property, more so, by ignoring cl. 11 of the lease deed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 8. The next common ground relates to the value of vehicles. The value of vehicles declared by the assessee and estimated by the Assessing Officer is as under: Asst. yr. Value declared Value estimated by the Assessing Officer Rs. Rs. 1986-87 1,08,955 3,50,000 1987-88 8,28,240 10,20,000 1988-89 5,44,903 11,48,129 In the first appeal the CWT(A) confirmed the value of vehicles adopted by the Assessing Officer following his appellate order dt. 12th June, 1992 in the case of the assessee for asst. yr. 1985-86. Being aggrieved, the assessee is in appeal before the Tribunal. 9. During the course of hearing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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