9911796707
TMI Blog1980 (3) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... he notification issued under s. 18(1) of the Tamil Nadu Land Reforms (Fixation of Ceiling on Lands) Act of 1961 (Act No. LVIII of 1961), (hereinafter to be referred to be as the Act) on 25th Feb., 1976, agrl. Lands to the extent of 2158 acres and 93 cents out of the above total extent of 3748-50 acres were declared as surplus lands and got vested in the Govt. of Tamil Nadu from that date. The dispute in these appeals centres round the inclusion and the valuation of the above 2158 acres and 93 cents of agrl. lands in the WT assessments of the assessee for the years under appeal. The assessee claimed that as per the above Act the ownership did not vest in him from the date of the Act and that further, in any event there was no market value at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against Rs. 11,74,526 adopted by the WTO for each of the assessment. yrs. under appeal. Aggrieved by this order of the CIT (A), the assessee has come on appeal before us. 3. We heard the ld. counsel for the assessee and the ld. Deptl. Representative. 4. It is common ground that agrl. lands to the extent of 2158.93 acres belonging to the assessee were determined as surplus under the provisions of the aforesaid Act. The argument of the ld. counsel for the assessee that the value of the above lands should not at all be included in the net wealth of the assessee for the year s under appeal on the basis of ss. 7, 10, 12 etc.; of the Act, cannot be accepted. The notification under s. 18(1) of the Act was made only 25th Feb., 1976 under which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in 104 ITR 368 Respectfully following the above rulings, were negative the contention of the ld. counsel of the assessee that the value of the surplus agricultural lands as above is not includible in the net wealth of the assessee. 5. The next point that arises is about the valuation of the above lands. It is well settled that under s. 7 of the WT Act, an asset has to be valued at the estimate of the price which it would fetch if sold in the open market on the relevant valuation date. The WTO has estimated the value of the above lands by taking the guidelines valuation fixed by the State Govt. Authorities for registration purpose. We agree with the CIT (A) that such a method of valuation would not be applicable to this case having reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee in respect of the surplus lands. He observed that it was ascertained that the assessee would get only Rs. 78,751 that however in the working furnished by the assessee the amount of compensation to be given in respect of different types of lands as prescribed in the rules was not taken into amount. Having regard to the above factors, the CIT (A) directed that the assessee's right to receive the compensation in respect of the surplus lands could be reasonably valued at Rs. One lakh. This value fixed for the asst. yr. 76-77 is accepted both by the Revenue and the assessee. Keeping this in view, we have to make a reasonable estimate of the market value of the surplus lands in question for the earlier asst. yrs. 1970-71 to 1975-76. The agr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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