9911796707
TMI Blog2000 (11) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... l as compared to the defects; and (iii) the CIT(A) erred in not accepting the contention of the assessee that the value of the sites at Sarakki Layout for the year should be determined only by adopting the cost index notified by Government to the value determined in 1980-90 (for the asst. yrs. 1990-91 to 1992-93 only). 3. We have heard Shri Parthasarathi, the learned counsel for the assessee and Shri Ramesh, the learned Departmental Representative. The learned counsel for the assessee submits that the definition of the appurtenant land relied upon by the CIT(A) is only for the purposes of conferring exemption on a small dwelling units and cannot be applied in cases similar to the assessee where the buildings are substantially big and put to use as factories, godowns, administrative blocks, etc., where sufficient open space has to be provided for movement of personnel and vehicles; there is no definition specifically for appurtenant land in the Act; and thus the buildings and the land on which they stand should have to be taken as one single unit; the CIT(A) has not given due consideration to the plan of the site area as worked out by M/s Sundaram Consultants wherein the unbui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yr. 1992-93, the AO had enhanced the value by applying the ratio between the cost index as on 31st March, 1991, and 31st March, 1992 as multiplying factor of value as on 31st March, 1991. Feeling aggrieved with the assessment order, the assessee had preferred first appeal and again being aggrieved with the first appellate order it has come before us in second appeal. 4. So far ground No. (i) relating to the valuation of the property at Bull Temple Road is concerned, the property had to be referred to the Valuation Officer as certain land and building were leased out and the leased land and buildings were not constituting business. In the valuation report of the District Valuation Officer, it was revealed that besides above, 6,900 sq. mts. were land appurtenant to old buildings which could not be quantified as business assets. The assessee had returned nil value for the property situated at Bull Temple Road. The assessee had got a plan of the site area on 23rd Jan., 1988, worked out by M/s Sundaram Consultants. The Valuation Officer had worked out the total area as consisting of two parts. (a) land of 6,902 sq. mts., area consisting of land, buildings of more than 50 years old ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buildings are concentrated and to give the appearance that the area is used for business, some portion is earmarked at the back side as scooter parking though in the other 1/2 same facilities could have been provided. It also appear from the plan that substantial portion of the land is available as free, which cannot be termed as land appurtenant to the buildings exempted from the wealth-tax. We also agree with the CIT(A) that as per the plan, the old buildings except guest-house (area 1,184 sq.ft) and workers canteen (area 1,808.5 sq. ft.) are concentrated in approximately 1/2 of the area stated to be covered by old buildings except guest-house and workers canteen about 1/2 of the area are vacant and this vacant area can have separate entrance from another road at the back side and can be developed for suitable purpose. We agree with the CIT(A) that the land and building appurtenant to guest-house is includible in the wealth of the company, by virtue of cl. (via) of s. 40(3) of the Finance Act, 1983, exempting the portion therein under workers canteen and land appurtenant thereto. The old buildings in the 1/2 portion facing the main road and land appurtenant thereto are also under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by leaps and bounds in Bangalore. The cost index increase of consumer items would not really reflect such increase. The comparable cases given by the District Valuation Officer also indicates this aspect. Therefore, I am of the view that the rates adopted by the District Valuation Officer represents the value of the property on the respective valuation dates more realistically. The AO has adopted the ratio of the cost index as on 31st March, 1991, and 31st March, 1992, as the multiplication factor of value as on 31st March, 1991, to find out the value as on 31st March, 1992, in the absence of any valuation by the District Valuation Officer. As this is only favourable to the assessee, the assessee cannot have any grievance about the valuation. Thus, I uphold the rate adopted for valuation of the land. 11. The new building portion consists of self-occupied portion and a let out portion. The District Valuation Officer has observed that portion of ground floor and whole of first floor is given on lease to Motorola Blue Star Ltd., w.e.f. 7th Oct., 1989. 11.2. The District Valuation Officer valued the property by rent capitalisation method........" 4.3. The decisions cited by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for the cost of earth filing involved, by the Valuation Officer, the value of the land as on 31st March, 1989, 31st March, 1990 and 31st March, 1991, was determined at Rs. 50.95 lakhs, Rs. 61.14 lakhs and Rs. 73,35 lakhs, respectively. The CIT(A) has, however, allowed further 5 per cent deduction i.e., 10 per cent deductions in total in the first appeal considering the above said disadvantages. 5.2. It appears from the record that the District Valuation Officer on actual measurement of the property had found that the property was more in the area than what was described in the documents. The District Valuation Officer had even not found the existence of nearby slum which was likely to effect the land of the assessee. 5.3. The orders of the lower authorities are comprehensive and reasoned one wherein the contentions of the assessee have been properly dealt with. We thus find no reason to interfere with the order of the CIT(A) in this regard. 6. The next ground is related to the valuation of 12 sites bearing Nos. 759 to 770 at Sarakki Layout, III Phase (Survey No. 94/96, 97/1 and 82 of N.S. Palya Village, Bangalore South Taluk). The registered valuer had reduced the value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... compared to the earlier year should only be on the basis of the cost inflation index notified by the Government; (ii) the CIT(A) has erred in holding that the inclusion in the net wealth of 45.000 sq. ft. of land in the factory premises at Bull Temple Road is correct; (iii) the CIT(A) is not correct in following his decision for the year 1992-93 as the provisions of law governing the assessment for the present assessment is different from that for 1992-93 and earlier years; (iv) the CIT(A) has overlooked the facts that for the purposes of inclusion in the wealth for 1994-95, the value of any land is not includible unless it comes under the definition of urban land laid-down in s. 2(ea) of the Act; and (v) while assessee admits that the value of the guest-house is includible in the net wealth, the value adopted should be only on the basis of fair rent according to Sch. III of the Act instead of applying land and building method. 8. We have considered the arguments advanced by the parties as well as materials available on the record. We have also dealt with the contentions of the assessee against the valuation of land properties of the assessee at Sarakki layout and Bu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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