1988 (7) TMI 15 - HC - Wealth-tax

Summary

Issues involved: Nine applications by the assessee u/s 27(3) of the Wealth-tax Act, 1957 for assessment years 1963-64, 1964-65, and 1966-67 to 1972-73.

Question 1: The Tribunal's error in holding that the valuation of the property should not be less than that returned by the assessee.

The dispute centered on the valuation of 20A, Aurangzeb Road, New Delhi, where the assessee had initially provided a value in the return. The Wealth-tax Officer accepted the value determined by the Valuation Officer, which led to an appeal by the assessee. The Tribunal directed the Wealth-tax Officer to recompute the value of the property based on certain directions, ensuring it would not be less than the value returned by the assessee.

Question 2: The relevance of principles from a specific Supreme Court case in determining property valuation under rule 1BB of the Wealth-tax Rules, 1957.

The Income-tax Appellate Tribunal did not refer this question as it believed the answer was self-evident. However, the High Court found that the question was of law and did arise from the Tribunal's order. The Court emphasized the importance of determining whether the assessee could benefit from a lower value calculated under rule 1BB compared to the value shown in the return.

Question 3: The relevance of certain factors in determining the property valuation.

The Tribunal had erred in law by not considering factors such as the property fronting on the service lane, being a fully developed plot with restrictions on further construction, and part of it being in an area designated for high rise public sector buildings. The High Court directed the Tribunal to refer question 1 for the court's opinion, emphasizing the need for a consolidated statement for all relevant years.

The High Court directed the Tribunal to refer question 1 for the court's opinion, highlighting the importance of determining whether the assessee could benefit from a lower value calculated under rule 1BB compared to the value shown in the return.