TaxTMI 
TaxTMI 
2010 (9) TMI 824
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....le Income-tax Appellate Tribunal, in view of rule 14(2)(b) of Part D of Schedule III to the Wealth-tax Act was justified in holding that the value of the properties should have been taken at the book value as these properties were business assets, without appreciating the fact that the fair market value of these properties was higher by more than 20 per cent of its book value and as per rule 14(2)(b) read with rule 20 their fair market value should have been adopted for the wealth-tax purposes ?" 3. The delay of 23 days in filing the appeal has been sufficiently explained, and is accordingly condoned. Since the matter is pending in this court for the last ten years, we have heard the appeal on the merits. 4. The brief facts, giving ri....
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....ted January 1, 1999, held that these plots of land are business assets and accordingly their values should be taken at Rs. 1,94,52,284 as disclosed by the assessee in the balance-sheet, in view of rule 14 of Schedule III. 4. Against the order of the learned Commissioner of Wealth-tax (Appeals), the Department filed a second appeal with the hon'ble Income-tax Appellate Tribunal. The hon'ble Income-tax Appellate Tribunal vide their order dated January 14, 2000 upheld the finding of the learned Commissioner of Wealth-tax (Appeals) by holding that the assets being business assets, their value was to be determined as per rule 14 of Schedule III and not as per rule 20 of the Schedule and accordingly they dismissed the Departmental appeal. 5....
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....n'ble Supreme Court in the case of Juggilal Kamlapat Bankers v. WTO [1984] 145 ITR 485 where it was held that value of any asset other than cash should be estimated at its market value as on valuation date. The sum and substance of the above decision is that if fair market value of the assets is higher by more than 20 per cent of the book value then its market value is to be adopted for wealth-tax purposes as against the book value." 5. The Income-tax Appellate Tribunal, deciding the Wealth-tax Appeal Nos. 1 and 2 of 1998, and Wealth-tax Appeal No. 9 of 1999 relating to the assessment years 1991-92, 1992-93 and 1993-94, was concerned with the valuation of the immovable properties in the books of account of the assessee as business asset.....
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....ce with clause (a), by more than 20 per cent., in such case the higher value has to be taken as the valuation of asset. He would submit that the valuation could not have increased by five times within an assessment year, and thus the assessing authority finding the difference, rightly relied upon the method of valuation under rule 20. He has relied upon the judgment in Trilok Chandra Seth v. Union of India [2000] 244 ITR 658/110 Taxman 289 (All.) of this court, in which it was found that since the market value of the assets of the firm exceeded by more than 20 per cent. the Commissioner had rightly taken the view that the value as shown in the balance-sheet, should not have been taken into consideration, and that the market value of the ass....
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....mine the net value of the assets of the business as a whole having regard to its balance-sheet as on the valuation date instead of proceeding under sub-section (1). The Supreme Court held that rule 2B(2) clearly provides that where the market value of an asset exceeds its written down value, or book value by more than 20 per cent the value of that asset for the purposes of rule 2A shall be taken to be its market value. 10. Shri S. D. Singh, learned counsel appearing for the assessee would submit that in case of valuation of immovable property, rule 3 in Part B of Schedule III provides for its valuation to be determined under section 7 of the Wealth-tax Act, 1957. In the cases where the conditions provided under rule 8, rule 3 are attract....
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....in accordance with rule 20 exceeds the value arrived at in accordance with clause (a) by more than 20 per cent, then the higher value shall be taken to be the value of that asset. He would submit that in case of immovable property the question of resorting to the valuation under rule 20, does not arise under rule 14(2)(b). It could only arise where the conditions given in rule 8 are attracted. In the present case he submits that none of the conditions, clauses (a), (b) and (c) of rule 8 are applicable to the immovable property, subject to determination of its value for assessment. 12. The three decisions cited by Shri Shambhu Chopra are not applicable to the facts of the present case. In this case we are concerned with the immovable prop....