COMMISSIONER OF WEALTH-TAX Vs. HIRA LAL MEHRA.

JUDGEMENT

(1.) THIS case relates to the assessment years 1973 -74 and 1974 -75. On four reference applications filed before the Income Tax Appellate Tribunal, Amritsar, by the Revenue as well as by the assessee, the following questions of law were referred to this court for adjudication :

(2.) FOR the year 1973 -74, the Wealth -tax Officer, Amritsar, passed the assessment order on March 26, 1979. On the same date, such like order was passed for the year 1974 -75. Property No. 13, the Mall, Amritsar, belonging to the assessee was valued at Rs. 3,76,000, as determined by the valuation cell. On appeal, the Appellate Assistant Commissioner, vide order dated November 23, 1979, reduced the value to Rs. 3,60,000. Ultimately, the matter came up before the Income Tax Appellate Tribunal, who, vide his order dated June 5, 1981, set aside the orders of the authorities below and directed the Wealth -tax Officer to consider the question of valuation of this residential property in the light of the decision of the Special Bench of the Tribunal in the case of Shri Biju Patnaik (W.T.A. Nos. 614 to 624/(ASR) 79, [1981] Taxation 61 (6)). The Wealth -tax Officer was directed to ascertain the value of the residential property on the basis of rule 1BB and then determine whether as reference to the Valuation Officer was called for under section 16A. It was further observed that the Valuation Officer also cannot ignore rule 1BB for the valuation of the residential property. After ascertaining such value, the assessee should be given an option which might be available to him under section 7(4) of the Wealth tax Act.

(3.) IN spite of service, nobody on behalf of the respondent has put in appearance. On fixation of the case, a registered notice was also sent and the assessee declined to accept the same. We have heard counsel for the Revenue.