Itxa/318/2009 Of International Book House Pvt. Ltd v. The Income Tax Officer , Ward 1(2)-1, Mumbai And Anr

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 318 OF 2009 M/s.International Book HousePvt. Ltd., Mumbai. V/s. The Income Tax Officer & another. ... Respondents. ... Appellant. S.N.Inamdar with Atul Jasani for the appellant. P.S.Sahadevan for the respondent. CORAM : V.C.DAGA AND J.P.DEVADHAR, JJ. DATED : 16th April 2009. P.C. :---- . Heard learned counsel for the rival parties. Perused impugned order. 2.By this appeal, the following reframed question of law is sought to be raised: "Whether on the facts and in thecircumstances of the case, AppellateTribunal was justified in law insubstituting an ad-hoc & arbitrary formulato determine fair market value of tenancyrights as on 1.4.1981 in place of valuationdone by approved valuer based on comparableinstances? 3.During the course of hearing, learnedcounsel appearing for the appellant- assessee brought "16. ..... The cost being fair market value of the acquisition of the tenancyrights as on 1.4.1981 is to be allowed inthe hands of the assessee and not the fairmarket value of the property as claimed bythe assessee. The assessee had acquiredthe tenanted premises on 11.5.1977 and thefair market value is to be determined as on1.4.1981. The net consideration has beenfixed at Rs.1,25,000/- as per our decisionin paras herein above and adopting the sameas the base we direct the Assessing Officerto increase the same by 15% appreciation ineach year and work out the cost ofacquisition of tenancy rights in thepremises as on 1.4.1981. The AssessingOfficer is directed to recompute the incomefrom capital gains on sale of tenancyrights in the hands of the assesseeaccordingly." 4. Learned counsel appearing for the assessee urged that the formula adopted by the Tribunal has nobase and the same is arbitrary in the facts andcircumstances of the case. Learned counsel appearingfor the revenue, while reacting to this submission,urged that the matter be remitted back to theassessing officer for reconsideration of this issuesince it would involve appreciation of evidence whichis already on record in the form of valuation. Hefurther submits that it would also be open for theRevenue to lead further evidence, if permissible.Both parties, therefore, came out with the jointproposal that the impugned order be set aside and the matter be remitted back to the assessing officer for reconsideration. 5.In the above view of the matter, by consent of parties, dispensing with the reasons in support ofthis order, we set aside the impugned order and remitthe matter back to the assessing officer forconsideration afresh. The assessing officer isexpected to deal with and decide the matter with expeditious despatch. All rival contentions on merits are kept open. 6. order with no order as to costs. Appeal is disposed of in terms of this (J.P.DEVADHAR, J.) (V.C.DAGA J.)