COMMISSIONER OF WEALTH TAX Vs. SUGANA MAHENDRAN SMT

JUDGEMENT

(1.) THESE petitions are filed under section 27(3) of the Wealth-tax Act, 1957, seeking a direction to the Tribunal to state the case and refer the following question of law, which, according to the petitioner, arises in T.C.P. Nos. 833, 837 and 841 of 1991, relating to the assessment year 1982-83 in each case :

(2.) IT is contended on behalf of the petitioner that the Board's Circular No. 326 (see [1982] 134 ITR (St.) 167), dated February 6, 1982, is only directory and in addition to that it only lays down the guidelines, therefore, the Tribunal ought not to have completely rested its decision as to income capitalisation only on that circular and ought to have relied on the sale of the property that had taken place in the year 1986 and on that basis it should have worked out the value of the property backwards as in the assessment year 1982-83. On the contrary, it is contended by learned counsel for the assessee that it is not at all open to determine the value of the property on taking into consideration the event of sale that takes place nearly four years after the assessment year. As far as the Board's Circular No. 326 (see [1982] 134 ITR (St.) 167), dated February 6, 1982, is concerned, the same was in force in the assessment year 1982-83, therefore, the Tribunal was justified in relying upon the same.