WENGER AND CO Vs. DISTRICT VALUATION OFFICER

JUDGEMENT

(1.) BY this petition under Art. 226 of the Constitution of India what is challenged is a valuation report dt. 20th July, 1974, submitted by the District Valuation Officer to WT/ITO, Special Circle XI, New Delhi in pursuance of the reference made to him by the WT/ITO under the provisions of S. 16A of the WT Act, 1957. The fair market value assessed at Rs. 32,80,000 by the impugned report is of a property known as "Wenger Building" in Block A, Connaught Place, New Delhi.

(2.) THE aforesaid building was constructed by one Sobha Singh of New Delhi on a plot of land leased to him by the then Secretary of State for India in 1924. The lease was in perpetuity. After constructing the building Sobha Singh let out diverse portions of the building to different persons. Wenger & Co., predecessor -in -interest of the petitioners, took on rent from Sobha Singh the following portions of the said building :

(3.) THE petitioners submitted a wealth -tax return of the partnership. The WT/ITO, Special Circle XI, New Delhi, respondent No. 2, in exercise of the powers conferred on him by S. 16A(1)(a) of the WT Act, 1957, referred the matter of valuation of the said building to the District Valuation Officer on 7th May, 1974. The District Valuation Officer, respondent No. 1, issued a notice dt. 11th June, 1974, under S. 16A(4) of the WT Act to B. M. Tandon, petitioner No. 2, indicating that while he proposed to accept the existing annual letting value for the portions in the occupation of the tenants, he proposed to estimate the fair market value of the portions in the occupation of petitioner No. 1 at Rs. 27,96,000 as on 31st March, 1972. Though the notice was spent in the name of B. M. Tandon, petitioner No. 1 filed objections to the proposed revision of the fair market value of the premises in its occupation. Thereafter, the premises were inspected and the petitioners were heard by the District Valuation Officer but he maintained the proposed valuation which he had indicated in his notice dt. 11th June, 1974. The fair market value of the entire building was thus assessee by respondent No. 1 at Rs. 32,80,000 as on 31st March, 1972. It is this report which is challenged before us.