INSTRUCTION FOR FIXING RESERVE PRICE FOR AUCTION OF PROPERTIES ACQUIRED UNDER CHAPTER XX-C OF IT
INSTRUCTION NO. 2/2013 [F. NO. 316/01/2013-OT]
DATED 5-2-2013
In
supersession to CBDT Instruction No. 1857 issued on 19-9-1990 vide F. No. 316/22/1989-OT for auction of
properties purchased under Chapter XX-C of the Income-tax Act, 1961,
comprehensive instructions on the modalities of fixing the reserve price for
auction of properties acquired under Chapter XX-C are as under :
i. The reserve price of the property is to be fixed
with reference to fair market value of the property.
ii. For obtaining the fair market value of the
property, the acquired property be referred to Valuation Cell of the
Department. Valuation Cell shall submit a Detailed Valuation Report to the
Appropriate Authority.
iii. This detailed valuation report should take into
account comparative market analysis by quoting at least three sale instances of
similar land use cases/properties in the vicinity.
iv. The Appropriate Authority shall, based on the
Valuation Report, arrive at the reserve price of the property. In case, it is
considered necessary by the Appropriate Authority to fix reserve price below
the valuation given by the Valuation Cell, proposal shall be sent to the Board
giving detailed reasons seeking prior permission.
v. The reserve price so determined shall be valid for
a period of six months from the date of determination of the same.
Regards
CA. Mona Singhal
Partner
Arpit Gupta &
Associates
Chartered
Accountants
701, Nirmal Tower,
26, Barakhamba
Road,
Connaught Place,
Delhi-110001
Mobile:-
+91-9873082769
Website:-
www.caaga.co.in
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