COMMISSIONER OF WEALTH TAX Vs. V C RAMACHANDRAN

JUDGEMENT

(1.) THIS is a reference under section 27(3) of the Wealth-tax Act, 1957, to be hereinafter referred to as the "Act". Two questions referred to this court for its opinion are : (1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in ignoring the value of the land surrounding the buildings in valuing the properties Nos. 1 and 2 ?; l and (2) Whether an asset such as land acquires value only when there is an intention to sell ? The facts of the case are fully set out in the statement of the case submitted. Hence, we shall quote the same.

(2.) FOR the assessment year 1959-60, the assessee, V. C. Ramachandran, sent his wealth-tax return on March 31, 1959, showing a total wealth of Rs. 3,41,106 comprised of immovable property of the value of Rs. 2,57,777 and movable property worth Rs. 83,329. The immovable properties consisted of four items, viz., :

(3.) AGAINST this order of the Appellate Assistant Commissioner, the department preferred an appeal before the Tribunal. The department's contentions before the Tribunal were :