Income Tax Appellate Tribunal - Hyderabad
Narmada Greenlands Pvt. Ltd., ... vs Dcit, Central Circle-9, Hyderabad, ... on 31 July, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCH "A", HYDERABAD
BEFORE SHRI P. MADHAVI DEVI, JUDICIAL MEMBER
AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER
WTA No. 10/Hyd/2017
Assessment Year: 2008-09
Narmada Greenlands Pvt vs. Dy. C.W.T
Ltd., Hyderabad. Central Circle - 9
Hyderabad.
PAN - AABCN2519B
(Applicant) (Respondent)
Assessee by : Shri K.C. Devdas
Revenue by : Shri M.H. Naik
Date of hearing : 24-07-2019
Date of pronouncement : 31-07-2019
ORDER
PER S. RIFAUR RAHMAN, J.M.:
This appeal is filed by the assessee for the A.Y 2008- 09 against the order of the Commissioner of Wealth Tax (Appeals)-12, Hyderabad, dated 28.10.2016.
2. Brief facts of the case are, assessee filed its return of wealth for the A.Y 2008-09 on 30.09.2008, declaring a net wealth of Rs. 10,64,800/-. The case was selected for scrutiny and notices u/s 16(2) and 16(4) of the Act were issued and duly served on the assessee. In response, Ld. AR of the assessee appeared and furnished the relevant information as called for. At the time of scrutiny A.O noticed that assessee valued its property at Sy. No. 25/1P, Petbasheerabad Village, NH-7 which comes under within 2 WTA.No. 10/Hyd/2017 Narmada Greenlands Pvt Ltd., Hyderabad.
8km radius from secunderabad cantonment area, measuring 0.20 Guntas or 2420 Sq. Yards by adopting a value of Rs. 440 per Sq. Yd. The assessee has not furnished any basis or explanation for adopting the above value of Rs. 440 per Sq. Yd. A.O calculated the market value from sub registrar, Quthbullapur vide Lr. No. 297/1/2010 dated 09.09.2010, as per which residential value per Sq. Yd @ 5,000/-, Commercial value per Sq. Yd. @ Rs. 8,000/-. In order to assess the value under wealth tax A.O adopted the guideline value advised by the Sub- registrar, for which assessee has objected and submitted that the above land is agricultural land and residential value cannot be adopted, for which A.O has not accepted the contentions of the assessee, as the property is urban land situated within the city limits of the Secunderabad.
3. Aggrieved with the above order assessee preferred an appeal before the CWT(A), however assessee has not represented before the CWT(A) and CWT(A) dismissed the appeal of the assessee and adopted the value as per the information available in the appeal memo. Aggrieved with the above order assessee preferred an appeal before us raising following grounds of appeal:
"1. The order of the Ld. CWT(A)-12, Hyderabad erred in upholding the decision of Dy. CWT, Central Circle-9, Hyderabad is unsustainable both in law and on f acts of the case.
The Ld. CWT(A) Hyderabad, erred in adopting the value of the Agricultural land admeasuring 0.20 guntas @ Rs. 5000 per Sq.yd which is not applicable to the agricultural land and therefore ought to have upheld the valuation as disclosed by the appellant at Rs. 10,64,500/-3 WTA.No. 10/Hyd/2017
Narmada Greenlands Pvt Ltd., Hyderabad.
4. Before us Ld. AR submitted that assessee is consistently adopting value of Rs. 440/- per Sq.Yd over the years and department accepted the above valuation and assessed the wealth tax. He brought to our notice the wealth tax assessment over the years from the A.Y 2003-04 onwards only in the A.Y 2005-06 the value of the land was assessed @ 1,000/- per Sq. Yd and however he brought to our notice in the A.Y 2007-08 the same land was assessed @ 6,000/- per Sq. Yd for which assessee filed an appeal before the CWT(A) and CWT(A) set aside such valuation and he directed the A.O to adopt the valuation as per the assessee's record. He submitted that all along the department accepted the valuation adopted by the assessee and now they cannot apply the guideline of Rs. 5,000/- per Sq. Yd on the agricultural land.
5. On the other hand, Ld. DR supported the valuation adopted by the A.O and relied on the order of CWT(A).
6. Considered the rival submissions and material on record. We noticed that assessee has adopted Rs. 440/- per Sq.Yd for the land situated at the outskirts of Secunderabad however the land is situated within 8KM of city limits. As per the rules assessee has to adopt the market value that would fetch of such assets sold in the open market on the valuation date. However, assessee has declared the value of the land in the computation of total wealth @ 440/- which is the guideline value per Sq.Yd, however it has not submitted or substantiated with any evidence or valuation report. As per records submitted before us assessee was adopting the above valuation over 4 WTA.No. 10/Hyd/2017 Narmada Greenlands Pvt Ltd., Hyderabad.
the years and the purchase value of this land is recorded @ 350/- per Sq. Yd. Since assessee is holding this property from the A.Y 2003-04 onwards and we do not have proper records to verify the date of purchase or purchase cost, and the assessee is adopting the guideline value since 2003-04, we are of the opinion that the guideline value cannot remain same over the years. As per the law assessee has to adopt the market value as on the date of valuation. As per the guideline value adopted by the A.O which is received from Sub registrar Quthbullapur which is guideline value for residential purpose, it is valued at Rs. 5,000/- per Sq. Yd. Since the assessee is having a vacant land and remained as it is from the last 5 /6 years sub registrar valuation are not the exact valuation and it may be applied only as an advisory value. For the sake of justice, the proper guideline value for the nearest property is not available. Therefore, We direct the A.O to adopt 80% of guideline value received from sub registrar. Accordingly grounds raised by the assessee are party allowed.
7. In the result appeal filed by the assessee is partly allowed.
Pronounced in the open court on 31 st July, 2019.
Sd/- Sd/-
(P. MADHAVI DEVI) (S. RIFAUR RAHMAN)
JUDICIAL MEMEBR ACCOUNTANT MEMBER
Hyderabad, Dated: 31 st July, 2019.
5
WTA.No. 10/Hyd/2017
Narmada Greenlands Pvt Ltd., Hyderabad.
KRK
1) Narmada Greenlands Pvt Ltd., Fortune Monarch Mall, 3 rd Floor, flat No. 707-709, Road No. 36, Jubilee Hills, Hyderabad.
2) CWT, Central Circle -9, Hyderabad.
3) CWT(A)-12, Hyderabad
4) Pr. CWT, Hyderabad.
5) The Departmental Representative, I.T.A.T., Hyderabad.
6) Guard File.