COMMISSIONER OF WEALTH TAX Vs. SHRIVASTAVA H S

JUDGEMENT

(1.) THIS is a reference at the instance of the Department under Section 27(1) of the Wealth-tax Act, 1957, and the following question of law has been referred by the Income-tax Appellate Tribunal for answer by this court : 7

(2.) THE brief facts giving rise to this reference are that the assessee is a Hindu undivided family. It owned property No. 290, Napier Town, Jabalpur, which consists of two blocks, namely, 290-D and 290-DI. Block No. 290-D is under self-occupation whereas Block No. 290-DI was let out to the Income-tax Department. THE aforesaid property was got valued by the Wealth-tax Officer from the Departmental Valuation Officer, who valued both the blocks of the property at Rs. 7,15,000. THE assessee questioned the above valuation and submitted that the valuation in question should have been worked out under Rule 1BB in respect of the Block No. 290-DI and in this manner, the value of the property should be taken at Rs. 2,13,500. As regards the self-occupied portion, it was pleaded that the value in question should be pegged at the cost of construction in terms of the Explanation to Sub-section (4) of Section 7 of the Wealth-tax Act, 1957.

(3.) IT was also observed that (hoadnote) :