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2013 (4) TMI 152 - HC - Wealth-taxCo-owners - Valuation as per Rule 1-BB of Wealth Tax Rules, 1957 - valuations of residential house, kitchen, servants quarters, garages, godown and cowshed at Sukhbir Sinha Park - Held that - In view of the decision of Apex Court in the case of Commissioner of Wealth Tax vs. Sharvan Kumar Swarup and Sons(1994 (9) TMI 2 - SUPREME Court ) decided in favor of assessee. Rule 1BB is essentially a rule of evidence as to the choice of one of the well-accepted methods of valuation in respect of certain kinds of properties with a view to achieving uniformity in valuation and avoiding disparate valuations resulting from application of different methods of valuation respecting properties of a similar nature and character.
Issues:
1. Valuation of share in a residential bungalow. 2. Valuation of various properties as per Wealth Tax Rules. 3. Computation of share value in a company. 4. Treatment of specific properties as covered by houses or agricultural land. Valuation of Share in a Residential Bungalow: The Income Tax Appellate Tribunal referred a question under the Wealth Tax Act regarding the valuation of the assessee's share in a residential bungalow for the assessment years 1973-74 and 1974-75. The Tribunal was questioned on whether it erred in not adopting the value used by the revenue for one of the co-owners in a previous assessment year. The High Court, based on previous judgments, returned this question unanswered. Valuation of Properties as per Wealth Tax Rules: The Tribunal was asked whether it was legally correct to value various properties, including residential house, kitchen, servants' quarters, garages, godown, and cowshed at specific locations, as per Rule 1-BB of the Wealth Tax Rules, 1957. The High Court decided in favor of the assessee on this issue, citing a precedent involving a similar case. Computation of Share Value in a Company: Another question raised was about computing the break-up value of the shares held by the assessee in a company without considering extra rent as its assets. The Tribunal was asked to determine the correct approach in this regard. The High Court returned this question unanswered. Treatment of Specific Properties: Regarding the treatment of specific properties, the Tribunal was asked to decide whether certain portions of land should be considered as covered by houses or as appurtenant to constructions found thereon. Additionally, the Tribunal was asked to determine if certain lands should be treated as agricultural land. The High Court returned these questions unanswered, aligning its decision with previous judgments on similar matters. In conclusion, the High Court answered the questions raised in the reference. Question 1 was returned unanswered, Questions 2 and 3 were decided in favor of the assessee based on relevant legal precedents, and Questions 4, 5, and 6 were also returned unanswered, following the court's previous rulings. The judgment provided clarity on the valuation of properties and the computation of share values in the context of the Wealth Tax Act.
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