Valuation stability for recently purchased property upheld where later enhancement lacked justification and appellate value was reasonable.

Valuation of a recently purchased flat was upheld at the figure adopted by the appellate authority because it was supported by the departmental valuer's report and no extenuating circumstances justified the later enhancement by the wealth-tax officer. The Board's circular on maintaining valuation stability for the next two years was treated as a relevant consideration, and the appellate figure was found to be reasonable. The higher valuation was therefore not interfered with, and the issue was decided in favour of the assessee.

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Issues: Whether the valuation of the flat at Rs. 2,66,000 fixed by the appellate authority for the relevant assessment year was liable to be interfered with.

Analysis: The property had been purchased shortly before the valuation date, and the appellate authority had adopted the value supported by the departmental valuer's report. The later enhancement made by the wealth-tax officer was not shown to rest on any extenuating circumstances justifying departure from the earlier valuation. The Board's circular, relied upon in support of stability of valuation for the next two years, was treated as a relevant consideration, and the appellate authority's figure was found to be reasonable.

Conclusion: The valuation fixed by the appellate authority was upheld and no interference was called for; the issue was decided in favour of the assessee.

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