COMMISSIONER OF WEALTH TAX Vs. ANILKUMAR M VIRANI

JUDGEMENT

(1.) THE Tribunal, Ahmedabad Bench 'C' has referred the following question under S. 27 of the WT Act, 1957 for the opinion of this Court :

(2.) THE matter pertains to the asst. yrs. 1978 79 to 1980 81 in respect of which, in the returns of wealth tax for these two years, the assessee took up a stand that the value of the house property should be taken in the asst. year 1971 72 at Rs. 2,17,400, and not as per the valuation report at Rs. 9,34,650. The WTO, holding that the assessee was a non resident and the property was not occupied by him for the whole year, held that S. 7(4) of the said Act was not applicable to him, and that the valuation of the house property should be taken as per the valuation report.

(3.) THE orders of the AAC were challenged before the Tribunal and the Tribunal, by its order dt. 18th June, 1986, dismissed the appeals of the Revenue, holding that the words "exclusively used by him for residential purposes throughout the period of twelve months immediately preceding the valuation date" should be interpreted pragmatically, fairly and reasonably and not in a pedantic sense. It was held that the term 'used' did not mean that the assessee should be in physical possession of the house or any part of it and it only meant that the house was used by him as a residence and not with a view to make any income or profit out of it.