COMMISSIONER OF WEALTH TAX Vs. SANKAR R

JUDGEMENT

(1.) IN these references under Section 27(1) of the Wealth-tax Act, 1957, the answer to the question posed would not be really necessary and if the Wealth-tax Officer had been given his own statutory powers and necessary freedom, the Tribunal would have been more than justified. INstead, the Tribunal has fixed the valuation of the property in question and proceeded to pass directions of a remand order. Only this needs modification, because when the statutory provisions are more than clear and there is an order of remand, the Wealth-tax Officer should be left free to determine the question of valuation in accordance with the law and the material on record.

(2.) THE assessment year in question is 1980-81, in regard to which the valuation date is August 16, 1979. THE two assessees in these references were owning 1.60 acres of land and a residential house in the land at Kacheri Junction, Quilon, in equal shares. Out of this, 27 1/2 cents of land was sold on May 24, 1979, at the rate Rs. 4,000 per cent. While valuing the property with reference to the assessment year 1980-81, the Wealth-tax Officer allowed only 30 cents of land as land appurtenant to the residential building. THE residential building and 30 cents of land appurtenant was valued at Rs. 1 lakh in the first instance and thereafter the remaining land of 92 1/2 cents came to be valued at Rs. 3,70,000 at the rate of Rs. 4,000 per cent. Since the two assessees had equal shares, each of them came to be assessed at Rs. 2,35,000 in respect of the property. This was confirmed by the first appellate authority by the order dated September 20, 1983. THE Tribunal, therefore, got concerned with two independent appeals of the assessees. What was urged for and on behalf of the assessees and the Departmental representative has been reproduced by the Tribunal in paragraphs 4 and 5, respectively. To summarise, the assessees submitted some material containing the statement of wealth as on August 16, 1970, which was filed along with the wealth-tax return for the assessment year 1971-72. With regard to the subsequent year 1972-73, the statement of wealth as on August 16, 1971, was also placed on record along with the assessment order in regard thereto having been passed on December 27, 1974. THE material in regard to the valuation of the residential property in accordance with the provisions of Rule 1BB of the Wealth-tax Rules, 1957, was also placed on record in the case of one of the assessees, Sri S. P. Rajagopala Iyer. On the basis of the material on record, it was submitted that the property has to be valued in accordance with Rule 1BB of the Wealth-tax Rules. It was also submitted that the provisions of Section 7(4) of the Wealth-tax Act, 1957, are also necessary to be looked into. In connection with the above provision, it was submitted that the value would come to about Rs. 1,75,000.

(3.) FOR the above reasons, we find that answer to the question would be unnecessary except and to the extent of modification regarding the freezing of the value of the residential property at Rs. 1,75,000.