9911796707
TMI Blog1982 (5) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee's valuation of property at Ambala, it will be of immense help in case a brief backdrop of facts of common importance for all the years under consideration is narrated. The assessee started constructing a property and during accounting year relevant to the asst. yr. 1965-66, as per its own valuation, invested a sum of Rs. 95,206. When it completed the construction in the subsequent accounting year ending on 31st March, 1966, which is relevant for the year 1966-67, according to the assessee, the total investment in the said property stood at Rs. 1,43,077. During the first assessment year, the assessee had shown the value of the said property at Rs. 1,54,400 on the basis of approved valure's report. In the income-tax assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Rs. 5,656 for wealth-tax purpose which was added as unexplained investment by the WTO to this figure. The ld. Departmental Representative Mr. R.S. Khichi, on the other hand, besides relying on the orders of the WTO contended that it is not the actual cost of the construction assigned by the WTO which is to be taken for wealth-tax purposes but it is the market value of the property whether complete or incomplete which is to be taken into consideration. In respect of the revenue's appeal, he submitted that according to the official cell, the valuation was assigned at Rs. 2,33,940 and the increase should not have been bifurcated by the AAC so as to compute the valuation of the said property on 31st March, 1965 at Rs. 1,48,000 as done by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d letter is dt. 17th Sept., 1974 whereas the assessment order under the WT Act is also of the said date. The ld. Counsel for the assessee submitted that the AAC dismissed this ground of the assessee on the plea that it was not raised before the WTO. The ld. Departmental Representative beside relying on the order of the AAC submitted that there is no proof whether the assessee's letter dt. 17th Sept., 1974 was placed before the WTO before the framed he assessment. 7. After taking into consideration the rival submissions, we find that the assessee vide its attorney's letter dt. 17th Sept., 1974 wrote to the ITO as under: "In filing the wealth-tax returns, it is submitted that inadvertently in the original returns or in the supplementary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would have sent back the matter to the file of the AAC with a direction to re-adjudicate the issue de novo but since the file would be going to the WTO for giving appeal effect, we restore back this issue to the file of the WTO to adjudicate the same de novo and consider the assessee's claim regarding loans after giving an opportunity and obtaining necessary information as to when the loans were raised and repaid, etc. The issue is, therefore, restored to the file of the WTO. 8. Coming to asst. yr. 1976-77, as above said, the valuation assigned to the said property by the assessee was Rs. 1,54,400 against which the WTO took the total valuation at Rs. 3,64,560. Since the property during the year was partly self-occupied and partly rented ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was that nothing should be taken. The assessee claimed that the fans did not belong to the assessee and the same were provided by the tenants. It was in the light of the assessee's submissions pertaining to fans that the AAC granted a relief of Rs. 5,000. When we look to the observations of the AAC that there are eleven bath-rooms in the property in question and each room has attached bath-room, it was looking to this that the AAC rejected the assessee's contention that the building in question was not commercial building in question was not commercial building and rate of residential building should have been applied to it, as was rightly done by the valuer. Regarding external services as well, the assessee's contention was rightly found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of India undoubtedly fixes the rate from time to time. Looking to the rate of interest on one hand, life of the property on the other hand, the fact that it is constructed on a land and the inflationary trend, multiplier of 12 1/2 per cent seems to be in order, according to us. The revenue's appeal for 1966-67 is rejected and cross-objection of the assessee is partly allowed. 11. For the asst. yrs. 1973-74 and 1974-75 as stated above, the only dispute is for multiplier as the whole of the property was tenanted during the two assessment years. For the very same reasons as given in the course of 1966-67 because of lapse of time till asst. yr. 1973-74, we are of the view that multiplier of ll instead of 12 1/2 per cent taken by the AAC sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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