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TMI Blog1984 (4) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... e by the Valuation Cell finally at Rs. 4,11,660. The WTO did not accept the value shown by the assessee for the cinema building and this was referred to the Valuation Cell who valued the property as under: Asst. yr. Rs. 1971-72 5,15,000 1972-73 5,28,700 1973-74 5,28,700 1974-75 5,52,000 1975-76 5,52,000 The Valuation Officer for the asst. yr. 1971-72 valued the land to which he added the cost of building, machinery, value of the old building and compound wall, etc. The valuation from 1972-73 and onward was made by capitalising the net profit earned by the assessee at Rs. 10.53 times. It is relevant to mention that this assessee came in appeal before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,11,660 as the market value of the cinema house on the valuation date. It was stated that the market value could not be equated with cost and, therefore, the value adopted by the Valuation Cell may be accepted. Shri Jha, the senior departmental representative, supported the argument of the Valuation Officer and further highlighted the difference between the value and the cost and he supported his argument by referring to the Commentary of the ld. author Shri Verma on wealth-tax. 4. The assessee's counsel, on the other hand, referred to the facts and urged that cinema building was not constructed new as indicated by the Valuation Officer. A portion of it under the direction of the West Bengal Government was demolished and reconstructed. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Similar observation is following in Smt. Amala Das vs. CIT Anr. (1983) 34 CTR (P H) 268 : (1984) 146 ITR 216 (P H) where it has been said that a valuation report is nothing more than a mere opinion about the cost of construction or the fair market value of a building. The estimate, as it has been said, will differ man to man. One estimate is available from the Valuation Cell and another estimate is available from the AAC. The valuation of the AAC has been assailed on the ground that it was based upon the valuation of the departmental valuer which was in connection with the investment of the assessee. It is true, but at the same time it is equally correct that the building was completed in the immediately preceding year and, therefore, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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