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TMI Blog2012 (7) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. That the appellant craves leave to add or amend the ground of appeal before the appeal is heard and disposed off." 3. The Revenue in both the appeals has taken the identical grounds which are reproduced as under: "1. On the facts and circumstances of the case the Ld. CWT(A) has erred in directing the AO to adopt the value of the land sold to one M/s. Amazon Enterprises Pvt. Ltd. as per circle rate prescribed by the district authorities as on 31.03.2007, not as per actual sale consideration received by the assessee; without appreciating the facts of the case that the market value of impugned land had already been decided in the month of March, 2007 and the same was the value of assets as on 31.03.2007 as per Schedule III to the W.T. Act, 1957. 2. That it is prayed that the grounds of appeal of the appellant on the above issues may kindly be heard and decided in favour of the appellant and that the order of the ld. CWT(A) in deleting the above additions be set aside. 3. That the appellant craves leave to add or amend the ground of appeal before the appeal is heard and disposed off." 4. First of all we take up assesse's appeal in W.T.A. No.18(Asr)/2010 for the Assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rima -facie restrictive and exhaustive as was indicated by supreme court in the case of Vanguard Fire & General Insurance Co. vs. Fraser and Ross (1961) 30 Compo Cas (Ins.) 13, AIR 1960 SC 1971. It is clear from the language used that expression "means" is used in the section and it has restricted meaning as provision specific definition given in section 2(ea) of wealth tax. When the language of the section is clear and unambiguous, there is no room for any intendment and there is no scope of interpreting the section otherwise. A bare reading of the above explanation would show that the urban land is one, which is situated in any area which is comprised within the jurisdiction of municipality of any other corporation mentioned therein, if the population of that city/town is not less than ten thousand and falls in the area within such distance, not being more than 8KM from the local limits of any municipality or cantonment board referred to in sub-clause(1) that the Central Government may having regard to the extent of and scope of urbanization of that area may notify in the Official Gazette. There is no dispute about the fact that the land in question falls within the definition o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he circle rate for that area fixed by the State Revenue 3,00,000/- per acre. The rate is fixed by revenue authorities keeping in view the local conditions and prevailing market rates in that area. It is for this reasons that the rates so fixed are the best indicator of the prevailing market rates and accordingly only the said rate can be applied as on 31.3.2007. d) Further, many sales have taken place in and around that area close to the valuation date and sale rates as per these sales are almost at the rates fixed by the Revenue Authorities which also proves the market value as on 31.03.2007. e) Further, your honour's kind attention is invited to the provisions of section 50C of the Act, where it is provided that where the sale consideration is less than value fixed by the State Govt. the difference shall be assessed to Income Tax in the hands of seller. This also shows that the circle rate fixed by revenue authorities is indicative of the fair market value and same has to be applied. One single sale exceptional transaction can not be determined that market value ignoring large number of sale transaction executed close to the circle rates fixed by the Govt. With referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted from future sale would not be fair market rate as on the last day of the financial year but would be a future market rate. The purchases have been made by M/s. Amazon Enterprises which was an exceptional sale which may be under some factors like defeating the interest of competitor or to monopolise some areas in advance for its strategic interest. Therefore, it does not reflect the true market price. Relying upon the decision of the Hon'ble Punjab & Haryana High Court in the case of CIT vs. Parminder Singh reported in (2010) 232 CTR (P&H) 195, where it has been held that market price assessed by collector has more persuasive value and is correct as compare to adoption of any other method in this regard. Therefore, the Ld. CWT(A) observed that the AO is not justified in rejecting the plea of the assessee for valuation purpose and circle rates should have been considered reflecting the market price. Accordingly, he directed the AO to adopt the circle area rates as on 31.03.2007 for valuation of agriculture land and allowed the appeal of the assessee. 11. The Ld. counsel Sh. Ashwani Kalia, CA, appearing for the assessee relied upon the order of the ld. CWT(A). 12 The Ld. DR , Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set, such rejection by the AO of the sale instances as at 31st March, 2007 in the sale area cannot be rejected. This approach of the AO in making assessment of the net wealth is not justified. 14. As regards adoption of the sale rate of 2.5 crore per acre for the sales made on 31st May, 2007 by the assessee being land on the main road to the Indian Corporate does not determine the market rate which was purchased in a particular situation which suits to buyer. No other deal at such rate has taken place either before or after that date had been submitted by the assessee before the AO. This explanation was given by the assessee at page 3 of AO's order at explanation (b) available in the said order of the AO. The said explanation was also rejected by the AO which is also not justified. Therefore, in such facts and circumstances of the present case, when there is no comparable case available with the AO @ 2.5 crore per acre except M/s. Amazon Enterprises Pvt. Ltd. Jamnagar, who made purchases in exceptional circumstances and that too on 31.05.2007 in the next year and when no such deal had been made either before or after the said date, then assumption or presumption for the dea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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