TMI Blog1976 (12) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... f rule 1(D) of the Wealth-tax Rules, 1957 ? " The short facts giving rise to this reference are : Proceedings out of which this reference has arisen related to the assessment to wealth-tax for the assessment year 1968-69. The assessee is an individual. He owned certain shares in companies belonging to J. K. group of companies. Those shares were not regularly quoted in recognised stock exchanges. He worked out the market value of the aforesaid shares by adopting the mean of their break-up value and the fair price of the shares arrived at by taking into account the average yield of the shares on the basis of dividends declared in the immediately preceding five years taking the value at par if the yield came to 8 per cent. The income-tax O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Wealth-tax Act specifically mentions the Wealth-tax Officer, who alone is required to take into consideration of wealth accordingly. According to Dr. Misra, the provisions of section 24(6) of the Act are independent and there is no conflict between the exercise of power by the Wealth-tax Officer under section 7(1) read with rule ID and the exercise of its appellate power by Tribunal under section 24(6) of the Act. He pointed out that the valuers may be required to conform to rule ID but this rule does not impose any fetters on the powers of the Appellate Tribunal to make a reference to them. He submitted that in that case the valuers will not be bound by rule ID and it is made clear by section 24(8), which contemplates an enquiry, and dete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the method of valuation adopted by the Tribunal for the earlier assessment year might be accepted for this assessment year also as the revenue appears to have been satisfied with the method of valuation adopted in earlier years and did not adopt the course provided in section 24(6). We must confess our inability to appreciate the reasoning adopted by the Tribunal. Section 24(6) entitles an appellant to object to the valuation of any property and to require the Tribunal to refer the question to two valuers. This is a special power conferred on the Tribunal which can be exercised only if an objection to valuation is raised by the appellant. Admittedly, the course, provided by section 24(6) was not invoked by the assessee. The Tribunal whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SC), counsel for the revenue has urged that the Tribunal exercises the same powers as are exercised by the Wealth-tax Officer under section 7(1) while valuing an asset. He has urged that the mere use of the word " in the opinion " does not in any manner indicate that the rule is not binding on the Tribunal. In McMillan Co.'s case [1958] 33 ITR 182, the Supreme Court while construing section 31 of the Indian Income-tax Act, 1922, explained the powers of the Appellate Assistant Commissioner, at page 192, thus : " Our attention has been drawn to the difference in language in which the two conditions for the application of the proviso have been expressed ; the first condition is fulfilled if no method of accounting is regularly employed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gainst a determination made adverse to him ? We feel that the second condition is expressed in the terms in which it has been expressed, because it involves an inferential process and the expression ' in the opinion of the Income-tax Officer ' is aptly used as that officer must in the first instance make the determination. It does not necessarily follow that the Appellate Assistant Commissioner cannot revise the determination and exercise the power which the Income-tax Officer could exercise. We agree that the powers exercisable by the Tribunal under section 24 are not different from that exercisable by the Wealth-tax Officer under section 7(1). The words " as it thinks fit " occurring in section 24(5) do not permit the exercise of power ..... X X X X Extracts X X X X X X X X Extracts X X X X
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