COMMISSIONER OF WEALTH-TAX Vs. RAM SARAN KAJRIWAL

JUDGEMENT

(1.) This reference has been made under Sub-section (1) of Section 27 of the Wealth-tax Act, 1957 (hereinafter to be referred as "the Act") The question referred is : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that the reversionary value of land cannot be included in the valuation of properties made on rent capitalisation method ?"

(2.) The facts are that Ram Saran Kajriwal is an individual subject to wealth-tax. He owns among other assets 1/6th share in each of the three properties known as : (1) 24/73, Birhana Road, Kanpur. (2) 73/27, Collectorganj, Kanpur. (3) 53/2, Nayaganj, Kanpur.

(3.) The last mentioned two properties were fully tenanted. The major portion of the property at Birhana Road was occupied by the assessee for self-residence. The other part of that property was also tenanted and in possession of other persons being let out to them. The Wealth-tax Officer referred the valuation of all the three properties under Section 16A of the Act to the Valuation Officer. Being bound by the valuation report, he computed the value of the assessee's share in the aforesaid properties as per the Valuation Officer's report. There is no indication in the assessment order about the method on which the valuer had worked out the valuation.