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TMI Blog2009 (2) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... known as Samod House which was used by the assessee for self-occupation? 2. The brief facts relevant to the case are that a property known as "Samod House" was used as residential house by the assessee and the question of its value came up for consideration before the Wealth-tax Officer where such determination was made as per the provisions of section 7(4) of the Wealth-tax Act, 1957 (for short "the Act"). The order of the Wealth-tax Officer was then challenged before the Appellate Assistant Commissioner by the assessee. While hearing the matter by the Appellate Assistant Commissioner, a question came up for consideration as to whether the valuation of the property is to be determined by invoking rule 1BB of the Wealth-tax Rules, 1957 (fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the opinion of the Wealth-tax Officer it would fetch if sold in the open market on the valuation date … (4) Notwithstanding anything contained in sub-section (1), the value of a house belonging to the assessee and exclusively used by him for residential purposes throughout the period of twelve months immediately preceding the valuation date may, at the option of the assessee, be taken to be the price which, in the opinion of the Wealth-tax Officer, it would fetch if sold in the open market on the valuation date next following the date on which he became the owner of the house, or on the valuation date relevant to the assessment year commencing on the 1st day of April, 1971, whichever valuation date is later: Provided that where more th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be freezed for all subsequent assessment years. In the present matter, for the assessment year 1971-72 the valuation of the property was made. Now coming to rule 1BB, which is quoted hereunder for ready reference: "IBB.(l) For the purposes of sub-section (1) of section 7, the value of a house which is wholly or mainly used for residential purposes shall be the aggregate of the following amounts, namely:- (a) the amount arrived at by multiplying the net maintainable rent in respect of the part of the house used for residential purposes by the fraction 100/8; and (b) the amount arrived at by multiplying the net maintainable rent in respect of the remaining part of the house, if any, by the faction 100/9: Provided that in relation to a h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attained finality as it was not challenged and assessment years involved in the present matter are of subsequent years. 9. In view of the above, it cannot be accepted that contrary to the provisions of section 7(4) of the Act, value of the property is to be determined more so when the value of the property so assessed in the year 1971-72 has not been questioned by the assessee on the strength of rule IBB of the rules and thereby the said assessment became final. Thus, in our opinion, the question in reference has to be answered in favour of the Revenue and against the assessee and we hold that the valuation of house having been determined by the assessment year 1971-72 is to be applied for the subsequent years and as the assessment years i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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