COMMISSIONER OF WEALTH TAX Vs. MOHAN DAS

JUDGEMENT

(1.) The Tribunal, Allahabad, has referred the following two questions of law under Section 27(1) of the WT Act, 1957 (hereinafter referred to as the Act), for opinion to this Court :

(2.) The reference relates to the asst. yrs. 1982-83 to 1985-86.

(3.) Briefly, stated the facts giving rise to the present reference are as follows : The respondent/assessee has been assessed to wealth-tax in the status of an individual. He owns property No. 89/331, Deputy Ka Padao, Kanpur, which is being used for commercial purpose having been let out to bank. For the assessment years in question, assessment orders were framed under the Act determining the value of the said building by applying the mode of valuation as land and building method. All the assessments were reopened by the AO under Section 17 of the Act on the ground that the wealth chargeable to tax had escaped assessment as according to the WTO, the property ought to have been valued by applying the rent capitalisation method. Feeling aggrieved, the respondent preferred separate appeals before Dy. CIT(A), Kanpur. The Dy. CIT(A) had partly allowed the appeals by holding that it would be reasonable and act of fairness if the value of the property is determined by taking average of rent capitalisation method and of land and building method.