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TMI Blog1987 (3) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... l assessment order. Some of the observations of the Tribunal in the said order which have been reproduced by the WTO in his order were as below: "The learned counsel for the assessee contended before us that the property is situated on the lease-hold land and it was purchased for a consideration in the sum of Rs. 3,87,437 and during the accounting period 1965-66, a sum of Rs. 83,437 was spent on alteration, additions, hence applying the ratio of 8.33 per cent the standard rent be worked out but since all these facts required to be verified, we are not adjudicating upon the issue of fixing the standard rent at our level and for the purpose restore this issue to the file of the Wealth-tax Officer, of course, after setting aside the orders of the lower authorities, with the directions that the standard rent be worked out and if need be after calling for form the assessee the requisite evidence to that effect." 3. It appears that a statement was filed before the WTO by the assessee at the time of original hearing wherein the working of the value of Atma Ram House, referred to by the WTO in his order, was given as below: &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; -------- 34,471 Rs. Less : Repairs one-sixth 5,745 Insurance 1,050 Collection charges 2,068 (C) 8,863 & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; Rs. Share of Mr. A. R. Chadha three-fourth 2,16,067 Share of Mr. C. M. Chadha one-fourth 72,023 -------- 2,88,090" -------- The above working was prima facie rounded up b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same had been filed by the revenue under section 27 of the Act. Even if it be that two opinions on the subject were possible, the view of the WTO could not be faulted, as it was based on good authority, namely, the order of the Tribunal. Proceedings under sub-section (2) of section 25 cannot be initiated merely because a second view on the subject was also possible. Unless the second view be of a higher appellate authority, the view of the Tribunal would prevail and the WTO did not err in determining the value of Atma Ram House by following the order of the Tribunal. Reference to the judgment of Russel Properties (P.) Ltd. v. A Chowdhury, Addl. CIT [1977] 109 ITR 229 (Cal.) was made by the learned counsel for the assessee in this connection. On behalf of the revenue reliance was placed on the order of the learned Commissioner (Appeals). 6. The Bench requested both the sides to take note of the provisions of rule 1BB of the Wealth-tax Rules, 1957, and the amendments thereunder and wanted to know from the two sides whether they would affect the issue presently before us in any manner. The submission of the learned counsel of the assessee was that rule 1BB would apply to predominant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd rent for himself for the accounting period under consideration and to call for evidence in support of the assessee's averments. The criticism of the Commissioner, therefore, that the WTO had not even followed the directions of the Tribunal for the assessment years 1967-68, 1968-69, 1970-71 and 1971-72 appears to us to have a grain of truth in it and for this reason alone he was justified in interfering with the order of the WTO, for, he did not follow the Tribunal's order even though he stated in his order that he was doing so. 8. Even the other reason given by the Commissioner to interfere with the order of the WTO appears to us to be correct. Atma Ram House is no doubt a commercial property, but its value has to be determined on yield basis and, therefore, the principles which would determine as to what is the meaning of the word 'yield' from a property would be the same in the context of commercial property as in the context of residential property. It would be illogical to assign two different meanings to the words 'yield' or 'annual rent' and 'gross maintainable rent' in the context of residential properties and commercial properties. Rule 1BB no doubt applies to predomina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1968-69, 1970-71 and 1971-72 would, in any case, not be affected by the altered definition of 'annual letting value' as given in section 23(1) of the 1961 Act with effect from 1-4-1976, which they noted in the passing in paragraph 8 of their order, for they were dealing with the years prior to 1976-77. The Commissioner did, therefore, have a valid point when he observed that the aforesaid order of the Tribunal, which did not note the provisions of rule 1BB and referred only to the amended provisions of section 23 could not have provided to the WTO a mode for determining the market value of the property for the assessment year 1978-79 which fell after the amendment in section 23(1) with effect from assessment year 1976-77. The market value of the property has to have its co-relation with the laws of the land operating at the relevant time, for they will be duly taken note of by the intending buyer before he offers the bid for the purpose of the property. The aforesaid reasoning of the Commissioner, therefore, appears to us to be correct and we are unable to find fault with it. 12. For the reasons given above, we sustain his order for the assessment year 1978-79. In the result, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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