COMMISSIONER OF WEALTH TAX Vs. A VISWANATHAN

JUDGEMENT

(1.) THE assessee is a Hindu undivided family. It constructed a house property at M. R. C. Nagar, Santhome, Madras. THE construction was completed in February, 1984, and it was occupied by the assessee for residential purpose immediately after the completion of the construction. For the assessment years 1984-85 to 1987-88, the assessee returned the value of the property at Rs. 14,92,964, Rs. 2,03,123, Rs. 1,91,663 and Rs. 1,91,663, respectively. THE Wealth-tax Officer took the value of the property at Rs. 35,39,844, Rs. 40,27,951, Rs. 46,19,685 and Rs. 61,98,557, respectively, in accordance with the Valuation Officer's valuation.

(2.) ON appeal, the Commissioner (Appeals) ordered to compute the value of the property by applying Rule 1BB for the assessment year 1984-85 and directed that the same value should be repeated for the assessment years 1985-86 to 1987-88 in view of the provisions of Section 7(4) of the Wealth-tax Act, 1957.

(3.) THE construction was completed in February, 1984. So, the assessee became the owner of the completed house from February, 1984. So, the next following valuation date will be March 31, 1984. THE Tribunal found that whatever may be the price which the property would fetch if sold in the open market as on March 31, 1984, would constitute its price for the purpose of Section 7(4) and, admittedly, the value of the house as on March 31, 1984, was returned at Rs. 15,86,143. THE Wealth-tax Officer, took the value of the property as Rs. 35,39,844, Rs. 40,27,951, Rs. 46,19,685 and Rs. 61,98,557. THE Tribunal found that the value of the house was Rs. 15,86,143 for each of the assessment years 1985-86 to 1987-88 as that was the market value as on March 31, 1984.