DWARKA DASS Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) In compliance with the directions of this court, the Appellate Tribunal has referred under Sec. 27(3) of the Wealth -tax Act, -1957, the following question for our opinion:

(2.) Sri Dwarka Dass, the assessed, holds on lease from the Government, the property known as 19, Barakhamba Road, New Delhi, standing on a plot of land measuring 1.327 acres or 6,453 sq. yards. 30% of the area is constructed upon. While 35% of the covered area is self -occupied the remaining 65% of the covered area has been let out and is in occupation of tenants. For the assessment year 1964 -65, the relevant valuation date being June 23, 1963, the petitioner returned the value of the said property at Rs. 5 lakhs, which was the accepted value for the assessment years 1961 -62 to 1963 -64. The Wealth -tax Officer enhanced the value to Rs. 11 lakhs. In appeal, the Appellate Assistant Commissioner confirmed the said valuation. The Tribunal, in second appeal, however, reduced the value of the property to Rs. 10 lakhs. Reference application filed by the assessed was dismissed. But, on his application, this court directed the Tribunal to refer to it the aforementioned question.

(3.) The only material on which reliance was placed by the Tribunal for enhancing the value of the property from Rs. 5 lakhs to Rs. 10 lakhs, was the following : (1) the fact that the area, wherein the property in dispute is situated, has been declared since September 1, 1962, as commercial area; (2) sale transactions of two adjoining properties, viz., 16, Barakhamba Road and 19, Curzon Road; (3) a portion of the property in dispute is self -occupied ; (4) absence of any condition for payment of 50% of increase in the value of land to the Lesser; and (5) failure to prove the charges for converting the property from residential to commercial. The last two factors were relied upon to justify the Tribunal's inability to reduce the valuation. But we have to first examine the justification for the enhancement of the value to Rs. 10 lakhs. We, Therefore, need discuss only the first three factors, on which strong reliance has been placed by the revenue.