A. Kalyanasundharam, Accountant Member - (1.)THESE are six appeals preferred by the revenue for two assessment years 1982-83 and 1983-84, objecting to the identical order passed by the AAC dated 21.12.1987, by which he had held that the revised valuation report on the cinema building known as Alka Talkies, the property of the firm M/s. Jaimal Singh & Sons, as invalid and the value of the cinema building must be adopted as per the initial valuation report made by the departmental valuer in the hands of the partners as their interest in the firm. The issues involved in all these appeals being common, for the respondents are partners of the said firm M/s. Jaimal Singh & Sons, and the issue being related to the valuation of the interest in the firm, these appeals were heard together. The notices to the respondents as well as to the valuation officer were sent by registered post and the acknowledgement of their notices are on record.
Despite the notices being served on the respondents and the Valuation Officer, they did not make their appearances, but the records of the Valuation Officer had been made available by the Departmental Representative Shri Srivastava. THESE appeals are being disposed of by considering carefully the arguments of the Departmental Representative, assessment records, the records of the Valuation Officer and also the paper book as filed by the respondents.

(2.)The facts of the case are being briefly brought out below. The firm M/s. Jaimal Singh & Sons has four partners, Shri Jai Singh, Shri Jaimal Singh, Shri Ajit Singh and Smt. Dhanraj Kaur, sharing the profit of the firm in the ratios of 20%, 50%, 15% and 15% respectively. The said firm was constituted by a deed dated 1.7.1970. The firm had constructed a cinema building during the financial year 1976-77 on a land, which is being owned by one of the partners, Shri Jai Singh. The said cinema building called 'Alka Talkies' was constructed in the town Pipariya. The three assessees, viz, Shri Jai Singh, Shri Jaimal Singh and Shri Ajit Singh had returned their interest in the said firm (balances as per the balance sheet of the firm) for the two assessment years at the values which is reproduced in a table form below. The written down value of the cinema building as per the balance sheet is also given below.
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The W.T.O with a view to ascertain the fair market value of the cinema building referred to the Valuation Officer, Bhopal, vide his communication ITO/AW-I/83-84/1837 dated 31.1.1984 Under Section 16A of the W.T. Act, directing the Valuation Officer to ascertain the value of the cinema building for the two valuation dates 31.3.1982 and 31.3.1983. The Valuation Officer inspected the property on 4.7.1984 and again on 23.5.1985, which was situated near the Railway Station of the town Pipariya. The Valuation Officer, Bhopal submitted his valuation report dated 28.6.1985 to the W.T.O. and to the assessee. The Valuation Officer vide his registered communication VO/BPL/WT 195-196/83-84/626 dated 23.7.1985, addressed to the I.T.O., A-Ward, Itarsi requested the ITO to forward the valuation report to the assessee, as the said report which was sent by his office to the assessee had been returned back to him with the remarks "Refused. Return to sender".

(3.)IN this report he had mentioned the plinth area constructed and the number of seats in the hall. The constructed area as mentioned in this report is reproduced below:-
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The roofing of the auditorium hall has been specified as ACC sheets on ROC columns and the other roofings are stone slabs. The life of the building has been estimated at SO years for the A.Ys. 1982-83 and 1983-84. The future life has been adopted at 45 and 44 years, respectively. The Valuation Officer adopted the plinth area rates as per CBDT instruction No. 365 and adjustments for cost index, height etc. have been mentioned as taken into consideration. Notice Under Section 16A(4) was issued on 31.1.1985 and the assessees' objections received by his office on 16.2.1985 are mentioned as considered. The rates, values, plus the adjustments, fittings etc. for the two valuation dates as on 31.3.1982 and 31.34983, as per the Valuation Officer's report dated 28.6.1985 are reproduced below:-

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The W.T.O. on the basis of this report did not conclude the assessment