TaxTMI 
TaxTMI 
2001 (8) TMI 10
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....f the possession while it was open to 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....
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....ment. Has no basement 10 per cent. to be 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 th....
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.... 36 per cent. Declared land rate deducting 36 per cent. 29,587 x .64 = Rs. 18,950 per sq. mt. Value of the land of the subject property 52 x 18,950 Rs. 98,54,000 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. 97,60,0....
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....of the fair market value by more than 15 per cent. and, therefore, the High Court held that the action is incorrect. The Department contends that the learned judges of the High Court could not have sat in judgment over the manner of calculations made by the appropriate authority. If any of the factors set out therein had been ignored in the matter of arrival of the fair market value, the same 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 in....
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....be increase of 1 per cent. every month. In respect of tenancy, the plea taken before the High Court is that the purchaser had mutual terms to get the property vacated from the tenant. While the ground floor tenancy was from the year 1979 and the first floor tenancy was from the year 1967, there is hardly any justification to presume that the tenants would vacate in 5/6 years. The sale instance 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 ....