TaxTMI 
TaxTMI 
2009 (7) TMI 742
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....e admitted by this court on July 12, 2004 and the substantial question of law formulated for consideration by this court at the time of admission is as follows : "Whether the appellate authorities were correct in holding that the valuation as adopted by the assessee should be accepted which was not based on any comparative sale instances or any accepted method of valuation adopted by ignoring the various materials and circum-stances under which the Assessing Officer had correctly valued per square feet of property at Rs. 332.335 and consequently recorded a perverse finding." 2. One N. Srirama Reddy had filed his original return of income on February 6, 1982 in respect of the assessment year 1981-82 and the assessment came to be comple....
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....ion by the assessee was on the basis of the valuer's report dated October 17, 1992 who had estimated the value for 16,525 sq. ft. built-up area at Rs. 318 per sq. ft. in the year 1988-89. The valuer seems to have further bifurcated the value in respect of the built-up area only as the land was owned by the assessee. The assessee claims to be the owner of the entire land in spite of the perpetual lease. 4. The Assessing Officer proceeded to hold that as the sale transaction though took place for the year 1988 the original agreement had been entered into in November, 1980 and as per the directions of the Commissioner, the capital gains had to be taxed for the assessment year 1981-82 by discounting the actual sale consideration to tha....
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....und that there is no error apparent on the face of the record. Thus, the Revenue is in appeal and seeks to answer the substantial question of law in its favour. 6. We have heard Sri M. V. Seshachala, learned counsel for the appellants and Sri Parthasarathy, learned counsel for the respondent-assessee. 7. Whether the Assessing Officer was correct in valuing the property at Rs.3,32,335 or the value adopted by the assessee and confirmed by the appellate authority which was at Rs. 200 per sq. ft. requires examination on the basis of the documents, namely, the perpetual lease. The first appellate authority while accepting the submissions of the assessee has given a finding that the land in proportion to 11 flats given to the appellants, i.....
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....nstruction and handing over the super built-up area together with the proportionate land to the lessee. This view of ours is fortified by noticing certain aspects mentioned in the supplementary lease deed dated October 22, 1986, whereunder the area to be given to the lessor by the lessee is mentioned in clause 2(a) of the lease deed which reads as follows : "2. The area to be given to the lessor in the : (a) basement as per the modified plan is 10.3 per cent. of the entire parking area in the basement and excluding the common areas like lobby, electrical room, passage, etc." 9. The other mitigating factor to be taken into consideration to answer the question of law in favour of the Revenue is that the Assessing Officer for the purp....