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TMI Blog2002 (6) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Rules and not by actuarial method of valuation representing the market value of the interest in accordance with the provisions of section 7 of the Wealth-tax Act? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in not accepting the value of life interest in Suhasbhai Vadilal Family Trust No. 1 and Suhasbhai Vadilal Family Trust No. 2 as determined by the actuary?" The applicant-assessee is assessed to wealth-tax as an individual. The relevant valuation date was March 31, 1978. The applicant had a life interest in Suhasbhai Vadilal Family Trust No. 1 and Suhasbhai Vadilal Family Trust No. 2. The value of life interest was declared by the applicant on the basis of actuarial valuation report of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing valuation, the apex court has already held that the rules of valuation were introduced in order to impart a uniformity in valuation and to avoid vagaries and disparities resulting from application of different methods of valuation in different cases where the nature of the property is similar. Learned counsel relied on the decisions of the apex court in Bharat Hari Singhania v. CWT [1994] 207 ITR 1 and CWT v. Sharvan Kumar Swarup and Sons [1994] 210 ITR 886. Having heard learned counsel for the parties, we are of the view that there is considerable substance in the submissions made by Mr. Tanvish Bhatt on behalf of the Revenue. In Bharat Hari Singhania's case [1994] 207 ITR 1, the Supreme Court rejected the contention that the rules of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of years' purchase value. The rule was intended to impart uniformity in valuation and to avoid vagaries and disparities resulting from application of different modes of valuation in different cases where the nature of the property is similar. Rule 1BB partakes of the character of a rule of evidence. It deems the market value to be the one arrived at on the application of a particular method of valuation which is also one of the recognised and accepted methods. The rule is procedural and not substantive and is applicable to all proceedings pending on April 1, 1979, when the rule came into force. Procedural law, generally speaking, is applicable to pending cases. No suitor can be said to have a vested right in procedure." In view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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