9911796707
TMI Blog1981 (1) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... th share therein). 3. The assessee HUF had valued the aforesaid properties on the basis of the valuation report of the approved Valuer, Sri T.N. Gupta dt. 10th June, 1971 for the years under consideration as under: Name of the property year of Assessment Value Rs. 1. 58/44 and 58/44-A, birhana Road, Kanpur 1973-74 2,37,568 . 1974-75 2,37,568 . 1975-76 2,83,000 2, 75/4, Halsey Road, Kapur 1973-74 3,48,000 . 1974-75 3,48,000 . 1975-76 4,26,000 3. 16/16, Civil Lines, Kanpur 1973-74 1,87,600 (known as Barkely House) 1974-75 1,87,600 . 1975-76 1,88,000 4. 49/23, Generalganj, Kanpur 1973-74 40,800 . 1974-75 40,800 . 1975-76 51,360 5. 49/26, Generalganj, Kanpur 1973-74 74,760 . 1974-75 74,760 . 1975-76 80,550 4. The WTO referred the question of valuation of the aforesaid properties for the asst. yrs. 1974-75 and 1975-76 to the Departmental Valuation Cell under s16A of the Act and on the basis of the report of the Valuation Officer and after hearing the assessee on the said report, determined the value of the aforesaid properties for the years under consideration as under: Name of the Property Year of Assessment Value Rs. 1. 58/44 & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere covered by the State Rent Control Act and were wholly let out, both the Departmental Valuer as well as the assessee's Valuer have worked out the value of the said properties in accordance with income capitalisation method. As such, there is no dispute between the parties before us in so far as the mode of the valuation of the said properties is concerned. 7. The first dispute between the Department and the assessee is regarding the deduction to be allowed on account of repairs and the collection charges from the gross rental value for the net A.L.V. to be arrived at, to which a particular multiple is to be applied for determining the fair market value of the property in question. According to the Departmental Valuer, the deductions on account of repairs and collection charges should be to the extent of 1/12th and 4 per cent respectively, while working our the net annual letting value in accordance with the instructions issued by the CBDT. According to the assessee's Valuer, the said deductions should be at 1/6th and 6 per cent respectively as has been said down in the IT Act. Such deductions, according to the learned counsel for the assessee, Mr. Pandey, have been approved in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mp at Kanpur) in ITA Acquisition No. 629/Alld/1979 in the case of Sri Annad Kumar Agarwal decided on 26th Feb., 1980. Against these arguments, the learned counsel for the assessee, Mr. Umesh Pandey, being himself on the decisions of the Calcutta High Court in Ashima Sinha and in CIT v Anup Kumar & Ors. (1980) 125 ITR 684 (Cal) and the following decisions of the Tribunal, urged that in the case of rented properties, the fair market value is to be arrived at by capitalising yield. No other facts enters into the picture: Bench ITA No./WTA No. Decided on 1. Allahabad Bench 'B' 5/Alld/1979 8-1-1980 2. Calcutta Bench 'A' (Camp at Kanpur) 275 to 284 (Alld)/1979 and other connected appeals 31-12-1980 10. We have given consideration to the above arguments. We have gone through the aforesaid earlier orders of the Tribunal relied upon by the parties. For the reasons stated by the Tribunal in the decisions relied upon by the Ld. counsel for the assessee. Mr. Umesh Pandey, which, in turn, are based on the aforesaid decisions of the Calcutta High Court, we hold that in the present case, since the market value of the aforesaid properties is being arrived at by capitalising the net annu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of repairs and maintenance should be allowed at 1/6th to arrive at the net annual letting value. No deduction on account of collection charges is to be allowed, as the AAC has found as a matter of fact that no expenditure was incurred towards the collection of rent. 13. The next dispute between the assessee's Valuer and the Departmental Valuer is in the matter of the multiple to be applied to the net annual letting value of the said property. The assessee's Valuer has applied a multiple of 16 to the net annual letting value to determine the fair market value of the said property at Rs. 1,85,000. The valuation Officer of the Department, on the other hand, worked out the total value of this property as on 31st March 1975 at Rs. 45,635 by applying the multiple of 4.2 to the net annual letting value and the value of this property as on 31st March 1975 was worked out by him at Rs. 37,525 by applying the multiple of 3.5 to the net annual letting value. At the same time, to the said value, he added sums of Rs. 10,61,682 (asst. yr. 1974-75) and of Rs. 12,33,185 (asst. yr. 1975-76) representing reversionary value of the land. 14. The arguments to resolve the said dispute both b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in Generalganj, inter alia, property No. 49/76 admeasuring 38.50 sq. yds. sold on 30th March, 1977 for Rs. 57,500 and 49/25, Generalgaj admeasuring 19.77 sq. yds. sold on 28th March, 1977 for Rs. 59,215. Against that, the AAC has determined the value of the land at Rs. 300 per sq. yd. on the basis of the valuation prescribed by the Nagar Mahapalika as on 31st March, 1975 for the areas known as Birhana Road and Mastoa Road Rs. 250 and Rs. 200 respectively per sq. Yd. 17. Coming to the valuation of the super structure, the Departmental Valuation Officer valued the constructed area at each of the floors at uniform rate of Rs. 170/200 per sq. yd. and this according to the AAC, was excessive, because according to him, the cost of construction of the 1st floor is lower than that of the ground floor and that of the 2nd floor is lower than that of the 1st floor. The District Valuation Officer worked out the electrification and water sanitary installation at 121/2 per cent each of the total cost of the building. Since, according to the AAC, each of the aforesaid building in question has ordinary electricity fittings and ordinary sanitary and water supply fittings, he estimated the cost ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
