COMMISSIONER OF WEALTH TAX Vs. LALJIBHAI BHAGWANBHAI KHARAWLA

JUDGEMENT

(1.) In this reference at the instance of the revenue, the following question has been referred by the Income-tax Appellate Tribunal, Ahmedabad for the opinion of this Court under Section 27 of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act") :-

(2.) The relevant assessment year is 1969-70. The assessee was the owner of two immovable properties. The assessment proceedings were finalized on the basis of the valuation report in respect of the properties including property No. 1355 situate at Jamalpur. The Valuation Officer undertook the valuation on the basis of the rental method and also added the reversionary value of the land. Relying on the decision of the Calcutta High Court in Devi Prasad Poddar vs. CWT,., the assessee contended before the Commissioner of Wealth-tax (Appeals) that as the property had been valued on the rental method, the reversionary value of the land could not be added over and above the market value of the property. The appeal was allowed. The Tribunal confirmed the appellate order of the Commissioner of Wealth-tax (Appeals) by following the aforesaid decision of the Calcutta High Court. Hence, this reference at the instance of the revenue.

(3.) We have heard Mr Akil Kureshi, learned counsel for the revenue. Though served, none appears for the respondent-assessee.