COMMISSIONER OF WEALTH TAX Vs. NIRANJAN NAROTTAM

JUDGEMENT

(1.) THE assessee is an individual. He owns a bungalow known as 'Shalimar' situate in Shahibag, Ahmedabad. The assessee disclosed the value of the bungalow at Rs. 3,95,260 in this return of wealth for the assessment year 1975 -76. The assessee contended before the Wealth -tax Officer that the bungalow which was exclusively used by him for residential purpose throughout the period of twelve months immediately preceding the valuation date, that is March 31, 1975, which is relevant to the assessment year 1975 -76, should be valued as provided in section 7(4) of the Wealth -tax Act, 1957. The assessee contended that the value of the bungalow on the valuation date relevant to the assessment year 1971 -72, that is March 31, 1971, should be adopted as its value on the valuation date, March 31, 1975. The Wealth -tax Officer however, rejected the assessee's contention and valued the bungalow at Rs. 15,48,600 for the assessment year 1975 -76. We are not concerned with the other assets of the assessee in this reference and, therefore, we have not considered it necessary to mention them.

(2.) BEING aggrieved by the assessment order passed by the Wealth -tax Officer for the assessment year 1975 -76, the assessee carried the matter in appeal before the Commissioner of Wealth -tax (Appeals) (hereinafter referred to as the 'Commissioner'). The Commissioner and, while disposing of the assessee's appeals for the proceeding years 1967 -68 to 1974 -75, by a common order dated July 14, 1982, accepted the assessee's contention that the provisions of section 7(4) of the Act would be applicable to the assessment years prior to the assessment year 1976 -77, and the value of the bungalow to be adopted for the purpose of assessment for the assessment years 1972 -73, 1973 - 74 and 1974 -75, would be the market value of the bungalow as on the valuation date relevant to assessment year 1971 -72 which according to him was Rs. 4,46,600. He, therefore, directed the Wealth -tax Officer to adopt the value of the bungalow at Rs. 6,46,600 for the assessment years 1972 -73, 1973 -74 and 1974 -75. The Commissioner, following his said decision, by his order dated January 13, 1983, directed the Wealth -tax Officer to adopted the value of the bungalow at Rs. 6,46,600 for the assessment year under reference, that is the assessment year 1975 -76 also under section 7(4) of the Act.

(3.) IT is in the background of the above facts that the Tribunal has, under section 27(1) of the Act, referred to us for our opinion the following question of law :