COMMISSIONER OF WEALTH TAX Vs. SRIKANTADATTA NARASIMHARAJA WADIYAR

JUDGEMENT

(1.) SINCE in all these references the dispute between the assessee and the Revenue is of identical nature and they arise out of the same facts but pertains to different assessment years, namely, 1977-78 to 1986-87, we intend to dispose of these reference cases by this common judgment.

(2.) A few relevant facts need to be noticed in order to appreciate the contentions raised and canvassed in these reference cases. They are : the assessee is Sri Srikantadatta Narasimharaja Wadiyar (Minor HUF ). The assessment years are 1977-78 to 1985-86. Bangalore Palace was the private property of late Sri Jayachamarajendra wodeyar, the former ruler of the princely State of Mysore. The total extent of Bangalore Palace is 554 acres or 1837365. 36 sq. mt. It comprises of residential units, non-residential units and land appurtenant thereto, roads and masonary structures along the contour and the vacant land. The vacant land measures 11,66,377. 34 sq. mt. Sri Jayachamarajendra Wodeyar expired on 23rd sept. , 1974. There was a dispute with regard to wealth-tax assessments of Sri Jayachamarajendra wodeyar pertaining to asst. yrs. 1967-68 to 1976-77. After the death of Sri Jayachamarajendra wodeyar, his son Sri Srikantadatta Wodeyar applied to Settlement Commission to get the dispute settled with regard to valuation of Bangalore Palace and the same came to be decided on 29th Sept. , 1988 for the assessment years namely, 1967-68 to 1976-77. The valuation date was 31st March of each calendar year. As per the norms fixed by the Settlement Commission, the wto decided the valuation of Bangalore Palace for the asst. yrs. 1967-68 to 1976-77. For the asst. yr. 1976-77, the valuation, as per the Settlement Commission was Rs. 13,18,44,000. The said valuation was for both land and building and for the land, it was Rs. 12,57,95,250 and for the building Rs. 60,48,750. The WTO adopted the same valuation for the block period of three years commencing from asst. yr. 1976-77. For the asst. yr. 1979-80, since there was no report of the Valuation Officer, the Commr. of Appeals worked out the value of the Bangalore Palace at rs. 19. 96 crores for the asst. yr. 1981-82. The WTO adopted the same valuation for the asst. yrs. 1979-80 and 1980-81. For the assessment years, namely, 1981-82 to 1983-84, the WTO fixed the value on the same lines and adopted the same value as was done for the previous assessment years. For the asst. yr. 1984-85, the value fixed by the WTO was Rs. 31,72,91,000 on the basis of the order passed by the Commr. of Appeals for the two earlier assessment years. Against these orders, assessee went up in appeal before the CIT (A ). One of the grounds urged is with regard to valuation of Bangalore Palace. The appeals relating to assessment years namely, 1981-82, 1982-83 and 1983-84 came to be disposed of by the CIT (A) by his common order dt. 9th Jan. , 1990. For the asst. yr. 1981-82, the CIT (A) made slight modification of the order passed by the wto and in regard to asst. yrs. 1982-83 and 1983-84, he confirmed the order passed by the wto.

(3.) THE appeals filed for the assessment years, namely, 1977-78 to 1980-81 were subsequently disposed of by the CIT (A) by his common order dt. 31st July, 1990 and in those orders, he accepted the plea of the assessee and held that the vacant land should be valued at Rs. 2 lakhs in each of these years. Similar orders came to be passed by the CIT (A) for the asst. yrs. 1984-85 and 1985-86 also.