COMMISSIONER OF WEALTH TAX Vs. LACHHMANDAS BHATIA

JUDGEMENT

(1.) By this reference under s. 27(1) of the WT Act, 1957 (hereinafter referred to as ;the Act; the Income Tax Appellate Tribunal, Indore Bench has referred the following question of law to this Court for its opinion :

(2.) The material facts giving rise to this reference, briefly, are as follows :

(3.) Having heard ld. counsel for the parties, we have come to the conclusion that this reference has to be answered in the affirmative and against Revenue. It is no doubt true that r. 1-BB of the Rules has come into force with effect from 1-4-1979 but as held by a Division Bench of the Karnataka High Court in CWT Karnataka Bangalore v. Vidyavathi Kapur, 1984 150 ITR 319 the rule is procedural. No, decision to the contrary was brought to our notice. We respectfully agree with the view takes in , 1984 150 ITR 319 . It is not disputed that the assessment proceedings were pending when the amended r. 1-BB came into force. The Tribunal was therefore, justified in setting aside the order passed by the WTO and in remanding the case to the WTO to determine the value of the house in accordance with the provisions of r. 1-BB of the rules.