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Issues:
1. Validity of reassessment u/s 16(3) r/w s. 17(1)(b) of the WT Act, 1957 for asst. yrs. 1977-78 and 1978-79. 2. Pegging of valuation of residential house property in terms of s. 7(1) of the WT Act, 1957. Issue 1: Validity of reassessment u/s 16(3) r/w s. 17(1)(b) of the WT Act, 1957 for asst. yrs. 1977-78 and 1978-79: The case involved the reassessment of an individual's net wealth for the assessment years 1977-78 and 1978-79 based on a valuation report provided by the departmental Valuation Officer. The WTO reopened the assessments using this report, leading to a dispute regarding the legality of the reassessment. The AAC upheld the reassessment, stating that the valuation report constituted valid "information" for the reassessment. However, the counsel for the assessee referred to a Supreme Court judgment and argued against the reopening based on the departmental valuation report. The Tribunal, after considering the contentions, held that the valuation report did not qualify as "information" under the WT Act. Consequently, the reassessments for the years 1977-78 and 1978-79 were quashed. Issue 2: Pegging of valuation of residential house property in terms of s. 7(1) of the WT Act, 1957: Another issue in the case was the valuation of a residential property under section 7(1) of the WT Act, 1957. The assessee claimed that the property should be valued as of 31st March 1971 under section 7(4), but the WTO rejected this claim, citing that the property was not exclusively used for residential purposes. The AAC upheld the WTO's decision. The counsel for the assessee acknowledged the mixed use of the property but argued for the application of Rule 1BB of the WT Rules, 1958 in determining the property's value. The Tribunal noted that since the property was not exclusively residential, the WTO's rejection of the claim was justified. Additionally, it held that Rule 1BB applied to the valuation of both residential and let-out properties based on a previous Special Bench decision. In conclusion, the Tribunal ruled in favor of the assessee on the validity of reassessment, quashing the reassessments for the relevant years. Regarding the pegging of the valuation of the residential property, the Tribunal upheld the decision of the authorities, stating that the property's mixed use justified the valuation method applied by the WTO and AAC. The application of Rule 1BB of the WT Rules, 1958 was deemed appropriate for determining the value of both residential and let-out properties based on precedent.
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