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TMI Blog2012 (11) TMI 1089X X X X Extracts X X X X X X X X Extracts X X X X ..... s valuation of landed property. 3. Shri K.M. Jose, the ld. representative for the taxpayer submitted that 91 cents of land owned by the taxpayer is purely agricultural land which is waterlogged marshy land. According to the ld. representative, this property is not on or nearer to national highway and actually it is situated in a bye lane known as Anjali Road about 100 mtrs away from the national highway. According to the ld. representative, this property does not have any road frontage or direct access to the national highway. The very same property was subject matter of wealth-tax assessment and the first appellate authority by an order dated 25-03-1992 found the market value of the property at ₹ 9,000 per cent for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... March, 2003 is very much available, there is no need for taking the value disclosed in a document which is later 3 years from the valuation date of the taxpayer and thereafter reducing the same by 15% every year. According to the ld.representative, the fair market value as on the valuation date has to be adopted on the basis of the document registered in the year 2003. 5. The ld.representative for the taxpayer has further submitted that the purpose of valuation under the Income-tax Act and the wealth-tax are totally on different footing. The valuation for the purpose of Wealth-tax Act is an annually recurring on the property held. Therefore, the method of valuation can only be on the conservative basis. The ld.representative further subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on record. In this case, according to the ld.DR, the taxpayer valued the land at ₹ 15,149; ₹ 15,420; ₹ 15,703 and ₹ 15,981 per cent for the assessment years 2003-04, 2004-05, 2005-06 and 2006-07, respectively. Subsequently, the taxpayer filed a revised return claiming the deduction of the outstanding loan of HDFC as on the valuation date from the value estimated. According to the ld.DR, the property in question is situated near Chinnakada, almost on the Kollam Thirumangalam national highway. The taxpayer estimated the market value apparently on the basis of the order of the first appellate authority for the assessment year 1989-90 after applying the capital gain indexation at the incremental value and reduced 15% o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which has been incurred in relation to the taxable wealth alone could be deducted while computing the market value. Therefore, the claim of the taxpayer cannot be allowed. Referring to the payment of income-tax on the estimated value, the ld.DR submitted that payment of income-tax on capital gain is an incidence which comes after the sale of the property. According to the ld.representative, the net market value has to be assessed after taking into consideration the debt incurred by the taxpayer in relation to that property and the expenses that may be incurred by the taxpayer in sale of such property. The tax on capital gain is not a factor to be considered while valuing the property on the valuation date. 8. We have considered the riva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sale deed is not the actual sale consideration. In the case before us, except the oral contention from the ld.DR, there is no other material placed on record to show that the sale consideration disclosed in the document filed by the taxpayer is not the actual sale consideration. It is also common knowledge that the cost of the lands through out the country increased last four or five years due to inflow of foreign direct investment. The tax payer has also placed reliance on the valuation made by the department for the assessment year 1989-90 @Rs.9,000 per cent. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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