TaxTMI 
TaxTMI 
2001 (8) TMI 10
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.... the purchaser to make use of the portion over the roof on the first floor. An application in Form No. 37-1 was filed on July 9, 1993. The appropriate authority worked out the fair market value of the property and the apparent consideration fell short by 24 per cent. of the fair market value. The appropriate authority compared the property in question with three different properties as sale instances to arrive at the correct market value of the property in question: (1) G-8, Maharani Bagh, (2) D-18, Maharani Bagh, and (3) N-62, Panchsheel Park. The High Court went into the mode of calculation of the fair market value adopted by the appropriate authority and stated that in respect of property comprised in D-18, Maharani Bagh, the agreement h....
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.... deducted Thus value to be added is 14 per cent. (24 per cent.10 per cent.) If 14 per cent. is added the land rate of subject property would come to Rs. 21,821 x 14 per cent. Rs. 24,875 or Rs. 25,000 per sq. mt. Value of land Rs. 1.30 crores Depreciated value of the structure Rs. 9,35,758 Total value of the subject property Rs. 1,39,33,758 The property is tenanted Depreciated value for 6 years at 8 per cent. is calculated at : Rs. 87,78,267 (Rs. 1,39,33,758 x .63) (a) Thus the value of the subject property is Rs. 87,78,267 (b) To this rent for 6 years is adde....
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.... Depreciated value of the structure Rs. 9,33,758 Rs. 1,07,87,758 Tenanted Depreciated value at the rate of 8 per cent. Rs. 67,96,287 (Rs. 1,07,87,758 x .63) Rental increase for 6 years Rs. 1,42,092.00 = Rs. 28,21,655 Barsati potential 148.90 sq.mt. x 18,950 Total value of the subject property Rs. 97,60,034 22 per cent. higher than to AC Subject property 3rd sale instance Sale agreement 9-7-1993 N-62 Panchsheel Park 800 sq. yds. having FIR Land rate declared works out at Rs. 28,455 per sq.mt. 29-4-1993 sale agreement consideration Rs. 1,56,00,000 If the rate ....
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....e would have affected the consideration made by the appropriate authority. There are several methods of arriving at fair market value such as comparative sale method or the capitalisation of the rent, i.e. yield method or any other appropriate method. But when the appropriate authority adopted one or the other method and in that process there is no inherent error or the factors taken note of by the appropriate authority being relevant, it is submitted that it is not open to the High Court to have interfered with such a matter. This court in Sudha Patil's case [1999] 235 ITR 118 has stated that when the appropriate authority comes to the conclusion one way or the other after giving due opportunity to the parties concerned and there has been ....
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.... in respect of property comprised in S-39-A. Panchsheel Park, which was substantially tenanted without any justification, was not taken into consideration, though rent capitalisation method was applied in that case. Why in respect of one tenanted property rent capitalisation method was applied to work out the fair market value and in the other case land and building method was applied is not clear. It is on this basis the High Court allowed the writ petition before it. It is no doubt true that the scope of interference under article 226 of the Constitution is very limited, but that is only in the nature of a judicial review of the proceedings and not by way of appeal or revision where the scope of interference is much wider. In cases of t....