COMMISSIONER OF WEALTH TAX Vs. V.P. SAMTANI

JUDGEMENT

(1.) ON an application under s. 27(3) of the WT Act, 1957, the Tribunal was directed to refer the following question set out at pp. 2 and 3 of the paper book.

(2.) WHETHER , on the facts and in the circumstances of the case, the Tribunal was justified in upholding the directions of Dy. CWT(A) to value the property at 69, Ganesh Chandra Avenue, Calcutta on rent capitalization method when the assessee himself has admitted the figure at Rs. 1,91,338 for several earlier years - In compliance of our direction the aforesaid questions are referred with the statement of case for our opinion. of Himalaya House at 38, Chowringhee Road, Calcutta. The AO has determined the value of the aforesaid share applying a multiple of 11 times of rental value. The gross value of the property comes to Rs. 6,44,171 and deducting 10 per cent for joint ownership the net value of the property has been taken Rs. 5,79,754. The assessee has also 1/6th share is the house property at 69, Ganesh Chandra Avenue, Calcutta and the AO took the value of the assessee's share in the said property as in the last year at Rs. 1,91,338. In appeal before the Dy. CWT(A) has directed the AO to apply the multiple of 9 to the net rent which was considered to be reasonable for the property at Chowringhee Road. So far as the property at 69, Ganesh Chandra Avenue, Calcutta is concerned, the Dy. CWT(A) has directed the AO to take the value on rent capitalization method and further allowed the deduction of 10 per cent for joint ownership. In appeal before the Tribunal the Tribunal has confirmed the view taken by the Dy. CWT(A) that multiple 9 times should be adopted for the property at Chowringhee Road and he further directed to apply the rent capitalisation method for the property at 69, Ganesh Chandra Avenue, Calcutta.

(3.) HEARD the learned counsel for the parties. The learned counsel for the Revenue, Mr. Mitra submits that though in the earlier years the property at Chowringhee Road was valued multiplying by 9 times to the net rent, so far as the property at Ganesh Chandra Avenue is concerned the assessee has himself valued as per r. 1BB and disclosed the value of that property at Rs. 1,91,338. Last year that was accepted. This year also the AO has taken the same value.