9911796707
TMI Blog1982 (12) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... sold the house to Smt. Pratipal Kaur, the appellant, for Rs. 48,000. On the aforesaid transfer, the Competent Authority received information from the Sub-Registrar, Kanpur, under Form No. 37G. On receipt of this intimation the Competent Authority made enquiries through an I.T. inspector, who reported that the fair market value of the house was Rs. 1,00,000 (Rs. one lakh). This estimate was based on the finding that the value of the land on which the house was constructed was Rs. 60,000 at the rate of Rs. 150 per square yard and the value of the building was Rs. 40,000. On receipt of this report of the inspector, the Competent Authority referred the matter to the Valuation Cell, Unit No. II, Kanpur, for determination of the market value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. The Income-tax Appellate Tribunal dismissed the appeal. Being aggrieved, the appellant has filed the present appeal. Section 269H, under which the present appeal has been filed in this court, lays down that an appeal against an order of the Appellate Tribunal can be preferred on any question of law. We are, therefore, required to consider whether the Income-tax Appellate Tribunal committed an error of law in upholding the judgment of the Competent Authority. For the appellant, the learned counsel, Sri A.N. Mahajan, urged that the proceedings were void ab initio as the Competent Authority had served notices on the transferor as well as the transferee much before the publication of the notice in the Official Gazette. In the present cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he submission made was that the house being in the possession of the transferor himself, the Competent Authority should have applied the rental method for, the purpose of finding out the fair market value. It may be true that the provisions relating to compulsory acquisition of immovable property are penal and that Competent Authority should not only find out that the statement about consideration mentioned in the transfer deed is untrue, but also that the ulterior motive of the parties was evasion or concealment of income-tax. The Competent Authority has to give a finding that the apparent value was deliberately concealed with a view to evade payment of income-tax. However, that apart, learned counsel's main submission was that the valuati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Neither before the Competent Authority nor before the Appellate Tribunal, the appellant urged that the rental method should have been applied for finding out the valuation of the house. It is for the first time in this court that the learned counsel has made the argument before us. Apart from the fact that in the second appeal, no argument on a question of fact can be permitted, we find it, even on merits, unsustainable. The method of land and building is a well recognized one and has been accepted for the purpose of finding out the correct value of the property. Parks, in his book Principles and Practice of Valuations, 4th Edn., p. 54, has stated about this method of valuation as under : "When land is not developed by buildings erecte ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
