COMMISSIONER OF WEALTH TAX Vs. PUKHRAJBAI JAIN

JUDGEMENT

(1.) THESE seven reference applications filed by the CWT, Bhopal under S. 27(3) of the WT Act, 1957, involve common question of law and facts and were accordingly linked together on request of the parties, heard analogously and disposed by this common order.

(2.) FACTS lie in a narrow compass. The non-applicants, assessees, are partners in a firm bearing name and style as Alka Theatre. The WTO had made reference of the valuation of Alka Talkies to the Valuation Officer who had valued the property by two methods, namely, a land and building method and yield method. He took mean of the valuation obtained by these two methods and on that basis determined the fair market value of the property. These methods was objected by the assessees. According to them the property should have been valued on the basis of net maintainable rent and yield method and mean of two should be taken as was directed by the Tribunal in the order dt. 26th Aug., 1991 in WTA Nos. 177 to 180 relating to asst. yr. 1975-76. In the case of the assessees, the assessee also objected to the manner in which the valuation of the property was done by the Valuation Officer, according to the yield method. The Tribunal accepted the objection of the assessees and upheld the order of the AAC. The Tribunal directed the authority to adopt the valuation of cinema hall in accordance with the order passed by it for the asst. yr. 1975-76. The assessment authority was of the view that it was free to have valuation ascertained in terms of S. 7 of the WT Act, 1957 and to accept the report under S. 16A of the Act. The directions were also issued by the Tribunal by its order dt. 17th Jan., 1989 in WTA Nos. 73 to 76/Ind/1988. Aggrieved by the directions to adopt the valuation of the cinema hall according to the method prescribed by its order in a case for the asst. yr. 1975-76, the Department filed the reference applications under S. 27(1) of the WT Act, 1957 seeking statement of cases and reference of questions as proposed. These applications were rejected. The Department, therefore, filed these reference applications under S. 27(3) of the Act, proposing about adoption of value according to order for asst. yr. 1975-76 and inclusion of the valuer's report.

(3.) SHRI Chaphekar submitted as under :