TaxTMI 
TaxTMI 
2009 (12) TMI 671
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....discussion rather he relied upon the order passed in assessment year 2003-04, therefore, for the facility of reference we are taking up the facts mainly from assessment year 2003-04. 2. The common grievance of assessee in both the assessment years relates to valuation of the properties sold by it in the accounting period relevant to assessment years 2003-04 and 2004-05 for the purpose of computation of capital gains. 3. The brief facts of the case are that assessee is a Waqf, i.e., a private trust. It has filed its return of income on 11-11-2003 declaring nil income in assessment year 2003-04 and on 27-9-2004 declaring an income of Rs. 12,70,303 in assessment year 2004-05. The assessee had purchased a property bearing No. 29 Elahigaj ....
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.... contention raised by the assessee was that the DVO ought to have determined the value of the property by rent capitalization method. Learned CIT (Appeals) rejected both these contentions of the assessee. He observed that certain sections of the Wealth-tax Act are referred in section 50C of the Income-tax Act, 1961 but these sections are procedural one where they provide the method of valuation. According to the learned CIT (Appeals) under the Wealth-tax Act, the method of valuation is governed by the provisions of section 7(1) of the Wealth-tax Act which contemplates that the valuation has to be made in accordance with Schedule-III of the Wealth-tax Act. However, in section 50C of the Act, nowhere a reference to section 7(1) of the Wealth-....
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....6. Learned DR, on the other hand, relied upon the orders of the revenue authorities below. She made a reference to the page Nos. 67 to 75 of the paper book wherein copy of the DVO's report is available. She submitted that learned DVO has considered the encumbrances of tenancy over the property while working out fair market value of the property on the date of sale. Therefore, no fruitful purpose will be served by sending the issue to the file of the Assessing Officer for readjudication. 7. We have considered the rival contentions and gone through the record carefully. Section 50C of the Income-tax Act, 1961 provides that where the consideration received or accrued as a result of the transfer by an assessee of a capital assets, being land....
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....cy at 33 per cent of the total value of the property. The property has been fetching a rent of Rs. 22,800 per annum only. The tenants are protected by the Rent Restriction Act of the State Government. They cannot be ejected. One may has to see whether a property giving an income of Rs. 22,800 per annum can fetch the value of more than Rs. 45 lakhs. Can any prudent businessman would like to make investment in such a venture or one would go to purchase such property only for pride of possession. The DVO has not specified why he is valuing the property on land and building method though it is, in his discretion to value the property either by land and building method or by rent capitalization method but any of such methods should give a fair m....