TaxTMI 
TaxTMI 
2015 (8) TMI 1101
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....nder the Wealth-tax Act, 1957. 2. The main issue involved in these appeals, in which common grounds raised by the Revenue, is whether the learned CWT(A) is right in deleting the additions made to the taxable wealth in conformity with S.7, Schedule III, Part H of the Wealth-tax Act read with Rule 20 of the Wealth-tax Rules. 3. Brief facts of the case are that the assessee is an individual. He had relinguished his rights/title/interest in some pieces of land situated at Hydernagar during the previous year relevant to assessment year 2008-09 for a consideration of Rs. 2.45 crores. The assessee has filed return of income disclosing capital gains arising from the relinquishment of the rights in the property in question. During the course o....
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....e, RR district vide Sale deed No.919/90 dated 22.1.1990 and 2202/90, 17.2.21990 from Satyasai Cooperative Housing Building Society, Hyderabad. Subsequently, Goldstone Exports Pvt. Ltd. and 15 others claimed that 98 Acres 10 Guntas in Survey No.172 of Hydernagar Village as belonging to them. It was also explained that the assessee filed petition in High Court in connection with his claim against Gold Stone Exports P. Ltd., but the Hon'ble High Court has dismissed the assessee's petition vide judgment dated 23.6.2006. Against this, the assessee filed a Special Leave Petition before the Hon'ble Supreme Court. 5. As the matter stood thus, the assessee filed a petition to settle the dispute outside the Court by way of compromise and v....
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....the fair market value of the land. Nevertheless, he valued it equivalent to, what, in his opinion, should be the fair market value of the land. That was the amount as determined by applying the circle rate. The Asst. Order rejected that valuation and substituted that by his own estimate which was based on the amount realized by the assessee for relinquishing that right/title/interest during the previous year relevant to Assessment year 2008-09. The fact that the assessee had offered long term capital gains in the assessment year 2008-09, on an amount which was received by him as compensation against relinquishment of all rights on the said property does not automatically make that amount to be market value of the valuation date of all the a....
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....not be justified." Aggrieved by the order of the learned CWT(A), Revenue has preferred its appeals for the three years before us. 7. Learned Departmental Representative, supporting the order of the Assessing Officer, submitted that the value of the assets in question has already been determined by the compromise deed entered into by the assessee. He further submitted that with regard to these properties, the price is already fetched by the assessee by way of sale/settlement on account of relinquishment of rights for a value of Rs. 2.45 crores, and therefore, the value of the assets in question should be adopted at Rs. 2.45 crores, for the purposes of computing the taxable wealth for the years under consideration. He accordingly strong....
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....n was under dispute during the relevant period, and even the Hon'ble A.P. High Court dismissed the petition filed by the assessee, and therefore, the market value of the prope in question on the relevant valuation dates would be less than the settlement amount received by him on compromise. In support of this plea, assessee is also claimed to have furnished the Assessing Officer the comparative sale instances with documents. It is for this reason, it is claimed that the assessee has returned the values of the property in question as per the values fixed by the State Government authorities for purpose of determining the stamp duty for registration. We find merit in the contention of the assessee that the settlement amount received by the....
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....e. In the instant case, the Assessing Officer has taken the received by the assessee in the year 2008-09, as the fair market value of asset for the preceding three years without any basis, which in our opinion is not correct. The Assessing Officer could have referred the issue of valuation of the property to the valuation officer under S.16A of the Act and find out the market value of the asset for each of these years separately. Without doing so, he adopted the amount received by the assessee in terms of settlement in the assessment year 2008-09, as the value of the property on the relevant valuation dates of the preceding three years, without any basis. The assessee, on the other hand, rightly adopted the circle rate of properties being t....