BAKHSHI RAM AGGARWAL Vs. COMMISSIONER OF WEALTH-TAX

JUDGEMENT

(1.) THE following question of law has been referred to this court relating to the assessment years 1977-78 and 1978-79 under Section 27 of the Wealth-tax Act, 1957, for the opinion of this court at the instance of the assessee by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (hereinafter referred to as "the Tribunal") :

(2.) THE issue being common, the Tribunal disposed of the appeals for the assessment years 1977-78 and 1978-79 by a common order by consolidating them together. A common reference order has been framed, therefore, both these petitions (Wealth-tax References Nos. 4 and 5 of 1983) are disposed of by a common order.

(3.) BEFORE the Tribunal, counsel appearing for the assessee pressed that a multiple of 8. 33 be adopted for capitalising the market value. The Tribunal, relying upon a Division Bench decision of this court in CIT v. Prem Nath Anand [1977] 108 ITR 549, held that the multiple of 12 was reasonable for capitalisation of the value for determining the market value. The view taken by the Gujarat High Court in CIT v. Smt. Vimlaben Bhagwandas Patel [1979] 118 ITR 134, adopting a multiple of 8. 33 was not accepted in view of the decision of the jurisdictional High Court in Prem Nath Anand's case [1977] 108 ITR 549. The order of the Appellate Assistant Commissioner was upheld and the valuation was determined taking the multiple of 12. The assessee filed a petition under Section 27 (1) of the Wealth-tax Act, 1957, which was accepted and the question reproduced in the earlier part of the judgment has been referred to this court for its opinion.