2016 (4) TMI 848

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.... decided was whether the one adopted by the assesses in the Wealth Tax return or the one which he had declared before the bank/financial institution. 2. On the facts and in the circumstances of the case and in law, the Ld, CWT(A) -2, Nashik has erred in holding that the valuation shown by the assessee for the impugned properties were more accurate than the value determined by the DVO which was based on the stamp duty valuation over looking the fact that the assessee himself had presented the said valuation to the bank. 3. On the facts and circumstances of the case and in law, the order of the Ld. CWT(A)-II, Nashik be cancelled on the above issue and that of the A.O. be restored. 4. The appellant craves leave to add, alter, modify, delete amend any of the grounds at any stage of appellate proceedings. 5. The appellant prays to file any of the additional evidence appropriate to the grounds taken in appeal. Similar grounds have been raised by the Revenue in the appeals for all the impugned assessment years. 3. The brief facts of the case as emanating from record are: The assessee filed his return of Net Wealth for the impugned assessment years....

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....assessment years under appeal. The comparative analysis of the different rates (in assessment year 2005-06) in respect of three properties which are subject matter of dispute are as under: Sr. No. Description Value as per Govt. ready reckoner as on 31.3.2005 Value as per D.V.O. Value adopted by A.O. 1 Shop No. 4, S. No. 591/6B, Ganesh Wadi, Jalgaon 3,21,907 4,25,582 51,70,518 2 a. Plot No. 4 to 14 at G. No. 23/3B, Khedi Village, Jalgaon 17,61,739 14,59,617 1,14,40,000   b. Plot No. 21 to 25 at G. No. 23/4, Khedi Village, Jalgaon         TOTAL 20,83,646 18,85,199 1,66,10,518   The Commissioner of Wealth Tax (Appeals) after considering the report of DVO accepted the value declared by the assessee in respect of the above properties, as the valuation declared by the assessee was more than the value computed by the DVO. In respect of agricultural land, the Commissioner of Wealth Tax (Appeals) held that in view of amendment of section 2(ea) by Finance Act, 2013 w.e.f. 01-04-1993 the agriculture land is not an asset liable to Wealth Tax. The Commissioner of Wealth Tax (Appeals) a....

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....t, the wealth tax assessments were reopened u/s. 17 of the Act. In response to notice u/s. 17 the assessee filed return of wealth. The Assessing Officer accepted the valuation of two properties based on Govt. ready reckoner, whereas, in respect of remaining three properties, the Assessing Officer adopted the value as per the valuation report given by the approved valuer. The ld. Counsel submitted that the valuation report of the Approved Valuer does not represent the fair market value, as it is not based on any sales transaction in the area. The value of properties as reflected in the Approved Valuer's report is highly exaggerated. The said valuation report was obtained for the specific purpose of securing more loan. The assessee during assessment proceedings had pointed the fact that the Approved Valuer's report does not show correct fair market value. The Assessing Officer in such situation ought to have referred the matter to DVO for determining the correct valuation of the properties in question. The ld. Counsel for the assessee referred to the report submitted by the DVO at pages 31 to 46 of the paper book. The ld. Counsel submitted that the value adopted by the DVO is based o....

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....erties shown in the valuation report given by the Approved Valuer were deliberately taken on the higher side so as to obtain higher loan. This fact was disclosed by the assessee during the assessment proceedings. However, the Assessing Officer brushed aside the contention of the assessee and in an arbitrary manner adopted the value of the three properties mentioned hereinabove, as per the Approved Valuer's report. The DVO in his report has valued the properties after considering the sale consideration of the properties in the vicinity and the total built up area of the properties. Whereas, the approved valuer without considering any sale instances and the prevailing rates estimated the value at much higher unrealistic rates. The Commissioner of Wealth Tax (Appeals) after considering the report of DVO and comparing it with the value declared by the assessee as per Govt. ready reckoner accepted the value of properties declared by the assessee. The value declared by the assessee as per Govt. ready reckoner and the valuation report submitted by the DVO are almost in the same range, barring minor variations. 8. As regards Agricultural Land No. 57/5 & 6 at Khedi Village, Jalgaon (1/4t....