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TMI Blog1991 (1) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... aluer ?" The assessment years in question are 1973-74, 1974-75 and 1975-76. The wealth-tax assessments were completed on November 28, 1974, December 10, 1975, and December 10, 1975, respectively. However, in the course of the assessment proceedings for the year 1976-77, the matter of valuation was referred to the Government valuer. On the basis of the report obtained for the year 1976-77, the Wealth-tax Officer opined that the properties in question were undervalued during the earlier three years referred to above. Consequently, he reopened those assessments under section 17(1)(b) of the Wealth-tax Act. The objection of the assessee was overruled by the assessing authority. The Appellate Assistant Commissioner accepted the contention of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year. We agree with the Appellate Assistant Commissioner that no new fact or information has come on record. Valuation is not an exact science.. Valuation is necessarily an estimate made by experts and two different valuers have made two different estimates. It cannot, therefore, be said that the valuation report of the Government valuer is definite information with reference to the value of the property." From the above, it is clear that the assessing authority estimated the value of the properties as on the valuation dates of the previous years by tracing back from the value given by the valuer with reference to March 31, 1977. For this purpose, a certain percentage from the valuation furnished by the valuer was reduced and after this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definite expert opinion as to the value of the property as on the relevant valuation date. It was not a case where the valuation report of a subsequent year was relied upon as information and, while reassessing the valuation, a certain percentage from the value of the subsequent date was reduced. (TRC. Nos. 3 to 10 of 1985-CWT v. M. Ramachandran [1991] 191 ITR 186 (Kar)) was also referred to by learned counsel for the Revenue. This was decided on January 14, 1991. In the said cases, for the assessment years 1964-65 to 1971-72, assessments were made in March 1973. They were reopened under section 17 because certain deductions were not allowable while computing the value. In the reassessment proceedings, the Wealth-tax Officer referred the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erring to two decisions of Puttaswamy J. in Amrut Talkies v. Second ITO, [1984] 150 ITR 386 (Kar) and in K. G. Kemptur v. Second WTO [1984] 146 ITR 611 (Kar). Further, this court also considered the scheme of Chapter XX of the Income-tax Act and the statutory recognition found in section 269 of the said Act, about the possibility of variation in the valuations in respect of the same property by different valuers. The other factors referred to therein are found at paras 3 and 4 thus (at p. 733): "Propensity to fluctuate is inherent in the market value due to several factors. Therefore, it is not a safe rule to estimate the market value as on a particular day with reference to the market value available on a much later date ; one difficulty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce to a subsequent date. From this valuation the Wealth-tax Officer deducted certain percentages to estimate the value as on the earlier valuation dates. There is absolutely no material that the value of the property fluctuated only by 10 per cent. or 20 per cent. as the case may be; the percentage for deduction selected by the Wealth-tax Officer was on entirely his own estimate and inference. It was not based on any expert opinion. It cannot be said that the value of the property was just about 20 per cent. less than the subsequent year. This again depends upon the developmental activity that took place in the locality and various other unidentifiable factors. In a developed city like Bangalore, the prices of the immovable property may sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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