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2000 (12) TMI 100 - SUPREME COURTWhether the life interest of the assessee added by the Wealth-tax Officer in accordance with rule 1B of the Wealth-tax Rules, 1957 ? Held that:- As has been noted, it was agreed by learned counsel appearing on behalf of both the assessee and the Revenue before the High Court that rule 1B was not workable in the circumstances of the present case, which is clearly correct for it is applicable only to an income-yielding life interest. It is, therefore, difficult to see how it can now be argued on behalf of the assessee that rule 1B was correctly applied. In any event, we are in agreement with the High Court, and indeed, with the Tribunal before it, that even if rule 1B did not apply, the said life interest, if an asset, had still to be valued and be included in the wealth of the assessee, which is what section 7 required. In the absence of a rule which can apply to the valuation of a particular asset, that asset must be valued in the ordinary way, by determining what it would fetch if it were sold in an assumed market ; the value being what an assumed willing purchaser would pay for it. This is how the said life interest must be assessed, upon the assumption that the assessee's personal right to reside in the property during his life time is saleable. For the reason aforestated, the judgment and orders under challenge are set aside. The question aforequoted is answered in the negative and in favour of the Revenue. The said life interest shall now be valued for each of the assessment years in question in the manner set out above.
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