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2023 (1) TMI 1038 - AT - Wealth-taxAddition of wealth of the assessee on account of immovable property - valuation of property - value as per the provisions of wealth tax Act or the value of the property declared in the income tax return - As submitted that the value of the property in dispute has to be determined in the manner laid down in part B of schedule III of the Wealth Tax Act - whether the property for the purpose of wealth tax has to be valued as per the provisions of wealth tax Act or the value of the property declared in the income tax return can be adopted for the purpose of the wealth tax? - HELD THAT:- As no ambiguity to the fact that the assessee has furnished the necessary details before the AO during the assessment proceedings. However, the AO without pointing out any defect in the details furnished by the assessee has adopted the value of the bungalow in dispute declared in the balance sheet filed in the income tax return. We note that the provisions of section 7 of the Wealth Tax Act is a substantive procedure as laid down in the case Commissioner of Wealth Tax Vs Shravan Kumar Swarup & Sons [1994 (9) TMI 2 - SUPREME COURT] No ambiguity to the fact that the value of the property has to be determined in accordance to the method prescribed under the Wealth Tax Act and without making any reference to the valuation done for any other purpose under any other Act. In our humble understanding, the case laws referred by the learned Commissioner of Wealth Tax (Appeals) in his order in the case of K.E.M.I Kwaja Mohideen V. Income Tax Officer Ward I(1) Nayapattinam [2019 (7) TMI 1442 - MADRAS HIGH COURT] is not applicable in the given facts and circumstances for the reasons as discussed above. As such the issue before The Hon’ble High Court of Madras was with regard to computation of capital gain under section 48 of the Income Tax whereas the issue before us is related the valuation of property for the purpose of wealth tax. Allahabad High Court in the case of CIT vs. Padampat Singhania [2016 (11) TMI 708 - ALLAHABAD HIGH COURT] has held that the value asset/property is govern by section 7 of wealth tax Act read with Schedule –III of Wealth tax Act We are of the opinion that the valuation of the bungalow in dispute has to be done as per the provisions specified under the Wealth Tax Act. Thus, the value declared under the income tax Act of the bungalow in dispute cannot be adopted for the purpose of the Wealth Tax Act. Accordingly, we set aside the finding of the learned Commissioner of Wealth Tax (Appeals) and direct the AO to delete the addition made by him. Hence the ground of appeal of the assessee is hereby allowed.
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