Case Law Details
Revenue having accepted the declaration of the valuation of the selfsame jewellery given by the assessee as on 31st March, 1989 as correct valuation for the purpose of Wealth Tax Act, there is no reason why the same valuation should not be treated to be a reliable base for the purpose of computing the capital gain under the Act by the process of reverse indexation.
We do not find any reason to disbelieve the valuation given by the assessee under the Wealth Tax Act as on 31st March, 1989 based on the valuation assessed by a Registered Valuer in terms of the said Statute. The Revenue having accepted the said valuation for the purpose of Wealth Tax Act, in our opinion, is precluded from disputing the correctness of the selfsame valuation for the purpose of assessment of capital gain, as the factor of “fair market value” is decisive for the purpose of both Wealth Tax Act and in ascertaining the cost of acquisition under the Income tax Act. Moreover, it appears that by reverse indexation method, which is a recognized mode of valuation, based on accepted valuation under the Wealth Tax Act as on March 31, 1989 the assessee would get benefit of about Rs. 1.5 Crore more. We, therefore, should follow the well-settled principle that the one, which is favourable to the assessee, should be preferred.
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX APPEAL No. 2322 of 2010
For Approval and Signature:
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