9911796707
TMI Blog1984 (12) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... d report of registered valuer in respect of property known as 'property at Malad.' The registered valuer valued this property at Rs. 68,02,994 as on 14th March, 1970. On that date, there were arrears of municipal taxes amounting to Rs. 16,00,000 which had charge against the property. There was substantial reservation in the Development Plant (200 acres) in respect of this property. The registered valuer estimated loss on this count at Rs. 2,50,000. At that time, there was probability of application of Land Ceiling Act. The registered valuer estimated the loss on this count at Rs. 10,00,000. On deduction of these three sums, the value was reject to Rs. 39,53,000 (39,52,994). The deceased had undivided 1/2 share in the said property. Such an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lared was Rs. 4,42,264. The WTO obtained report of the District Valuation Officer estimated the value of half share at Rs. 42,50,864. The WTO accepted this value and completed the assessment. The assessee has accepted the order of the WTO. 4. It will thus be seen that the value a declared by the assessee was Rs. 4,42,264 while the value as finally determine was Rs. 42,50,864. The WTO, therefore, initiated proceeding under s. 18(1)(c) of the Act. In response to the show-cause notice, the assessee explained that value declared was on the basis of report of registered valuers and that variation had arisen because of difference in the estimates made by Valuation Officer and registered valuer. This was not, according to the assessee, a case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no gross or wilful neglect on his part. The value declared was not arbitrary. The variation had come about because of difference in the estimates. The estimate made on behalf of the assessee was bona fide. there was not ground for imposing penalty. He, therefore, cancelled the order of penalty. 7. In the memo of appeal two grounds have been raised on behalf of the Revenue, the first was that order cancelling the order of penalty was erroneous. The second was that on the facts of the case, Explanation 4 in s. 18(1) was attracted under which there was presumption of furnishing inaccurate particulars because of the fact that declared value and that presumption had not been rebutted. 8. We have considered submissions made by parties and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the first instance, we have to bear in mind that this is not a case where there was any concealment about any item of property or about particulars regarding said property, viz., Area, situation, description, etc. The Department's case is that there was wilful suppression of true value of the property and in that sense there was furnishing of inaccurate particulars. This allegation might have had some force if the assessee had submitted his own arbitrate estimate about the value of the said property. The assessee had not done so. The assessee had entrusted the question of valuation to a registered valuer who was expert on the subject and had obtained the estimate of the value from him. He thus made a bona fide attempt to obtain fair esti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Rs. 88.02 lakhs as on 31st March, 1971. The latter value is less than one third of the former. There is such vast difference in the estimates made by two Departmental officers. We are told that ultimately for estate duty purposes the latter value was accepted by the Department. 11. The value as determined by registered valuer was Rs. 68,02,994 as on 14th March, 1970. The assessee thought that from this figure deductions should be made of amount relating to arrears of municipal taxes which amounted to Rs. 31,81,020 on the relevant valuation date. The assessee also considered that deductions should be made for estimated loss on account of probability of coming in force of Land Ceiling Law and substantial reservation (200 acres) in the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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