COMMISSIONER OF WEALTH TAX Vs. KAPOOR CHAND

JUDGEMENT

(1.) This reference under section 27 of the Wealth-tax Act, 1957, has been made by the Tribunal for our decision on the following question :

(2.) This issue has been considered by the hon'ble Supreme Court in CWT v. Sharvan Kumar Swarup and Sons [1994] 210 ITR 886, wherein it has been held that rule 1BB of the Rules 1957, partakes of the character of a rule of evidence. It deems the market value to be the one arrived at on the application of a particular method of valuation which is also one of the recognized and accepted methods. The rule is procedural and not substantive and is applicable to all proceedings pending on April 1, 1979, when the rule came into force.

(3.) In view of the above, the reference is answered in the affirmative against the Department in favour of the assessee. This reference is disposed of as above.