9911796707
TMI Blog2007 (7) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the assessing officer to invoke specific rules 3, 4 & 5 of Schedule III of the Wealth-tax Act when the transaction of lease is between sister concerns, without giving the assessing officer the option of applying Rules 8 and 20, even if they are found to be relevant ?" 2. When the matter came up on 05.02.2007, notice was ordered by this Court returnable in two weeks. Private notice was also permitted. Inspite of the same, there is no appearance on behalf of the respondent. 3. The facts leading to the above substantial question of law are as under : The assessee is a Private Limited Company dealing in the purchase and sale of lands. The assessee purchases vast extent of land, plots them out and later sells the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply the Residuary Rules, Viz. Rules 8 and 20, if situation warrants. 5. Heard the counsel. The Tribunal held that the assessee is subject to wealth-tax and for the purpose of determining the value of the immovable property, the Tribunal remanded the matter with a direction to the Assessing Officer to apply Rules 3, 4 and 5 of the Schedule III of the Wealth-tax Act. The order of the Tribunal reads as under : "13. We have gone through Schedule III wherein Rule 3 Part B for determining the value of the immovable property has been provided. First of all, we have gone through the provisions of Rule 3, 4 and 5 of Schedule III and seen that the let out property is to be valued after arriving at by multiplying the net maintainable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evance of the Revenue is that the Tribunal has specifically mentioned only the Rules 3, 4 & 5 to be invoked and directed the Assessing Officer to determine the value of the property. Schedule-III of the Wealth-tax Act deals with rules for determining the value of assets. Part B of Schedule-III deals with immovable property and Rule 3 deals with valuation of immovable property. Rule 4 deals with net maintainable rent how to be computed. Rule 5 deals with gross maintainable rent how to be computed. Rule 6 deals with adjustments to value arrived at under Rule 3, for unbuilt area of plot of land. Rule 7 deals with adjustment for unearned increase in the value of the land. Rule 8 deals with the rule not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he valuation date. (2) Notwithstanding anything contained in sub-rule (1), where the valuation of any asset referred to in that sub-rule is referred by the Assessing Officer to the Valuation Officer under section 16A, the value of such asset shall be estimated to be the price which, in the opinion of the Valuation Officer, it would fetch if sold in the open market on the valuation date. (3) Where the value of any asset cannot be estimated under this rule because it is not saleable in the open market, the value shall be determined in accordance with such guidelines or principles as may be specified by the Board from time to time by general or special order." 8. The apprehension of the Revenue is that the Tribunal had given only a specific ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
