TMI Blog1981 (10) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that the same be property worked out now. 2. The learned Commissioner (Appeals) has erred in confirming the value of life interest as worked out by the WTO following rule 1B and not accepting the actuarial report submitted by your appellant." With regard to the Ground No. 1, we have been informed by the learned departmental representative and by the learned Advocate on behalf of the assessee that the Commissioner had proceeded under section 264 of the Income-tax Act, 1961 ("the Act"). Therefore, this ground has become infructuous and is dismissed. 3. With regard to Ground No. 2, the Commissioner (Appeals) has confirmed the value of the life interest of the assessee as worked out by the WTO who followed rule 1B of the Wealth-tax R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry provision, the scope of the power to be exercised under the provisions must be ultimately to determine the price of an asset if it is sold in the open market on the valuation date. Now, when section 7(1) opens with the words 'subject to any rules made in this behalf' the rules contemplated were rules which would enable the WTO to determine the price. In other words, any rules made must be for the purpose of carrying out the object of section 7, the object being to determine the market value as contemplated by section 7(1)..." It was of the view that the word "may", used in the main part of section 46(2), clearly indicated that it was in the nature of an enabling provision, enabling the rule making authority, in respect of topics specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act to decide in accordance with the principles of the Act and the Rules made thereunder. The Court also held : "... Assessment appeal to the Appellate Assistant Commissioner and further appeal to Tribunal are parts of an integrated process. It is well established that an appellate court or authority exercises the same power as the trial court or assessing authority. We do not agree that the use of the expression 'as it thinks fit' in any manner takes away or whittles down the binding effect of rule 1D. The Tribunal has to consider the orders passed by the authorities below in the light of the law applicable to those authorities." The second Allahabad High Court case above follows the first one. Shri J. P. Shah has tried to distinguish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only because it may not be necessary to ascertain the market value of all assets. In some cases, the market value may be too well known and so the question of ascertainment would not arise. On a perusal of clauses (b), (c), etc., it can be seen that the word "shall" has been used where no other possibilities are there. Thus, the word "shall" in clause (b) has been used because returns must be made and when made they must be verified. The word "may" in clause (e) is used in relation to making appeals and applications because they may or may not be made. But the word "shall" is used in that clause in relation to verification because when once an appeal or application is made it must be verified. Further, the purpose of making the rule is to p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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