SUDESH CHANDRA TALWAR Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) In this reference under Section 27(3) of the W.T. Act, 1957, the following questions have been referred to this court :

(2.) In order to appreciate the questions it would be relevant to refer to certain facts. The assessment years involved are 1964-65, 1965-66, 1966-67, 1967-68, 1968-69 and 1969-70 for which the respective valuation dates were 31-3-64, 31-3-65, 31-3-66, 31-3-67, 31-3-68 and 31-3-69. The question of valuation of the property at premises No. 8, Dover Park, Calcutta, on the respective valuation dates was involved in the appeals before the Tribunal leading to the present reference. The said property is a trust property. It was purchased on the 30th March, 1964, for Rs. 1,20,000 by the trustees for the benefit of the minor beneficiary. It may be mentioned that the trustees were the two major sons of the tenant of the premises and one at the relevant time was a solicitor of this court. The beneficiaries of the trust are the minor children of the settlor. The said property consists of a two-storeyed building and open land measuring 17 cottahs and 8 chattaks. The building consists of 7 rooms with a garage and a servant's quarters attached to it. The assessee's father was living in the said building as a tenant at a monthly rent of Rs. 434 when it was purchased by the trustees and he continued to live therein at the same monthly rent after it was purchased. Inasmuch as certain controversy has arisen as to whether the rent was fair or not, it is appropriate, in our opinion, to refer to the order of the AAC wherein he observed, inter alia, as follows :

(3.) The Tribunal also in its appellate order observed as follows :