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TMI Blog2013 (3) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... , future development potentiality, accessability, infrastructure facilities like bus stand, airport, railway station, etc. need to be taken into account while estimating the value as on the valuation date. The guideline value fixed by the State Registration Department for the purpose of registering the document is also one of the factors which need to be taken into account apart from the comparative sale instance in the locality. In our view, the matter of valuation of the impugned property requires reconsideration at the end of the assessing officer. Accordingly, we set aside the orders of Ld CIT(A) for all the years under consideration . We also direct the assessees also to properly assist the assessing officer in determining the mark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessees declared the above said consideration in their respective returns of income for the assessment year 2006-07. 4. The Assessing Officer noticed that the impugned land is an "urban land" falling under the definition of "asset" as defined u/s. 2(e)(a) of the Wealth Tax Act. The Assessing Officer also noticed that these assessees did not file their wealth tax returns. Accordingly, the Assessing Officer issued notices u/s. 17 of the Wealth Tax Act for the assessment years 2002-03 to 2005-06. As the assessees had sold the land on 28.05.2005, the Assessing Officer adopted the said sale consideration of Rs.78,65,540/- as the value of their respective portion of land as on 31-03-2005. For the other three preceding years, the Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s sold by all the stake holders to the developer M/s Nikunjam Constructions Pvt Ltd. It was further submitted by the Ld A.R that the total area of 1 acre and 12 cents was having a house property and hence the value of the impugned land should have been determined as per the rules applicable to the valuation of building. This contention of the assessee was rejected by Ld CIT(A) on the reasoning that the property obtained by theses assessees on partition is a "Vacant land". We are inclined to agree with the view taken by the Ld CIT(A). The undisputable fact remains that the assessees did possess and did sale only vacant land. On effecting partition, the building portion has gone into the hands of some other persons. It is now shown to us that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra 9 of its order. "9. The market value is nothing but a price that may be agreed by a willing seller and a willing purchaser. Market price is not a constant figure. It may fluctuate depending upon various factors such as selling the land for a venture and the urgency for acquiring the land by the purchaser. For the purpose of wealth tax, we have to estimate the market value as on the date of valuation in a notional manner. Therefore, several factors such as the extent of land, location of the land, access to road, future development potentiality, accessability, infrastructure facilities like bus stand, airport, railway station, etc. need to be taken into account while estimating the value as on the valuation date. The guideline value fix ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law after providing reasonable opportunity of hearing to the taxpayer." 9. In the instant case also, the assessing officer has determined the value of land as on 31.3.2005 on the basis of its sale value, which was sold on 28.05.2005. Thus, there was a time gap of about 2 months between the valuation date and the date of sale. The impact on the value of land on account of the time gap of 2 months was not considered by the tax authorities. For other years, the AO has determined the value of land by giving gradual reduction of 2%, while the Ld CIT(A) determined the value by giving gradual reduction of 15%. The above said methodology is not in accordance with the discussions made by the Tribunal in the case of C.P. Mathen (referred supra). H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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