WEALTH TAX ACT, 1957

Section 16

Assessment - Addition made on account of valuation of land made on basis of instance of sale occurred subsequent to date of valuation - Substantial amount of money was paid prior to valuation date as an advance consideration -

Assessee challenged order of Tribunal confirming addition made on account of valuation of land made on basis of instance of sale occurred subsequent to date of valuation when the land in question was subject to Urban Land (Ceiling and Regulation) Act, 1976 as on date of valuation. Held: There could not have been a better guide for Wealth Tax Officer for adopting market value of property in question than actual sale itself which occurred within a few months from relevant date of the valuation. In instant case though actual sale might have taken place after valuation date, substantial amount of money was paid prior to valuation date as an advance consideration. View taken by Tribunal could not be faulted. A conjoint reading of section 7 and section 2(q), would indicate that requirement of law is that value of any asset for purpose of Act shall be its value as on valuation date. For determining value of the asset as on the valuation date there cannot be any embargo on the Wealth Tax Officer not to take into consideration valuation of identical assets immediately preceding or succeeding the valuation date or that he has to arrive at the valuation of the asset only as per the valuation report.

Distinguished:Sri. S.N. Wadiyar (Dead) Through LR v. CWT [Civil Appeal Nos. 6873-6881 of 2005 decided on 21-9-2015] : 2015 TaxPub(DT) 3880 (SC)

REFERRED :

FAVOUR : Against the assessee

A.Y. : 1991-92

SUBSCRIBE FOR FULL CONTENT

OR Try Reload the Page