TaxTMI 
TaxTMI 
1995 (9) TMI 97
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....ccepted by the ITO. He found out that the value of the same property had been declared by the assessee in his WT return for assessment year 1984-85 at Rs. 96,000 only. He thus came to the conclusion that the value of the property 20 years earlier should have been much less than Rs. 96,000. He, therefore, directed the ITO to adopt fair market value of the property as on 1-1-1964 having due regard to the cost of construction and market value of the property as declared by the assessee himself in the WT assessments for the later years. The CIT discussed in his order that it is an undisputed fact that the site on which the above-mentioned house was constructed, had been allotted by the City Improvement Trust Board in 1956 for a consideration of....
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.... that the value of the same property was Rs. 1 lakh as on 1-1-1964. The CIT has not given a definite direction to the ITO about the value of the property to be accepted as on 1-1- 1964. On the other hand, he has left the matter wide open for the ITO to arrive at his own valuation of the building, having due regard only to the cost of construction and the market value of the property declared by the assessee in the WT assessments. Acceptance of the value of Rs. 1 lakh as on 1-1-1964 as declared by the ITO is, therefore, very much erroneous and prejudicial to the interests of revenue. Hence, we uphold the action of the CIT in giving the abovementioned direction. 4. The CIT furthermore found that the assessee had claimed and was also allowe....
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....d from the impugned order of the CIT that this is not a case where the assessee simply omitted to show the income from the self-occupied property in his returns of income for assessment year 1982-83 onward. On the other hand, when a specific question in that regard was put up to him during the course of his IT assessments for those later years, he had given a reply that during the period covering the assessment years 1982-83 to 1984-85, and until the sale of the property, it was being used for practicing the profession of cost of accountancy. It is thus clear that the assessee escaped paving tax on the allegedly self-occupied property by asserting at that time that the house was being used for his profession only. At that time no inkling....
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....learly show that the profession of the assessee was atleast on amoderate scale. We have not been provided with the description of the house under consideration and especially of its covered area. Utilisation of the entire house by the assessee for his professional purposes cannot therefore be considered to be quite improbable. On the other hand, we feel that the assessee has failed to establish his stand that the house was actually of the nature of a residential house. We also do not find much merits in the argument of the assessee that a house is to be considered as a residential house merely from the angle of its construction, viz., if it be equipped with a kitchen, bath room etc., we are unable to accept this judgment. The same house may....
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....ire year. The assessee actually returned 40 per cent of the same being Rs. 1,200 as the perquisite value of user of the quarters provided by the company. The CIT also found out that the value of perquisite in respect of power, fuel, water charges and furniture had been worked out by the employer by taking 40 per cent of the amount expended in respect of them. He, therefore, finally directed the ITO to value the perquisite of the rent-free accommodation as per Rule 3 of the IT Rules. He furthermore gave a direction to value the aforesaid perquisites also under the relevant IT Rules and having regard to the amounts spent by the employer in providing these facilities. The learned counsel for the assessee strongly contends in this connection th....