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2013 (9) TMI 185 - HC - Wealth-taxValuation of Property – Nature of Wealth Tax Payable - Whether the Tribunal was right in directing the AO to value the properties for the A.Y. 1995-96 to 1998-99 and in holding that wealth tax payable by the assessee was to be treated as debt and the same had to be excluded from the wealth for the purpose of wealth tax assessment - Held that:- The rules on valuation of the immovable property were framed as a matter of State policy and when there were rules they had to be followed - Thus, the assessee cannot disregard Schedule III to the Wealth Tax Act, which was mandatory and as such, the question of adopting the value as by way of enhancing at certain particular percentage cannot be upheld by the Court - When it was purely a question of law as to the method of valuation to be adopted, not valuation as such for consideration – Relying upon CWT Vs. Sharvan Kumar Swarup and Sons [1994 (9) TMI 2 - SUPREME Court ] - there was no hesitation in rejecting the assessee's plea for a remand – Revenue’s plea was accepted and the matter was restored to the files of the AO to adopt Schedule III to Wealth Tax Act in valuing the property - To that extent the order of the ITAT was set aside. Commissioner of Wealth-Tax, Gujarat Vs. Vimlaben Vadilal Mehta [1983 (10) TMI 3 - SUPREME Court] - The tax liability under the Income Tax Act, Gift Tax Act and the Wealth Tax Act were debt owed by the assessee on a valuation date - even though such determination might be subsequent after the valuation date - Where there was no tax liability there was no debt owed by the assessee on the valuation date. The ITAT allowed the assessee's appeal based on the valuation determined in the assessee's own case for the assessment years 1984-85 and 1985-86 - Thus, the Tribunal directed the Assessing Officer to adopt the rate for all the assessment years under consideration - While considering the valuation of the property the ITAT held that the immovable property had to be valued as per Schedule III to Wealth Tax Act - CWT Vs. Sharvan Kumar Swarup and Sons [1994 (9) TMI 2 - SUPREME Court ] - the property at Kodaikanal was to be valued as per Schedule III to Wealth Tax Act, the same yardstick ought to have been extended while considering the valuation of the Kochadai property. - Decided in favor of revenue.
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