RAJ PAUL OSWAL Vs. COMMISSIONER OF WEALTH-TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Amritsar Bench, has referred the following question for the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that a reference to the Valuation Officer by the Wealth-tax Officer under Section 16a of the Wealth-tax Act, 1957, was discretionary and not mandatory, even when the difference in wealth returned by the assessee and the wealth assessed by the Wealth-tax Officer was more than the limit prescribed under Rule 3b of the Wealth-tax Rules ?"

(2.) IN order to appreciate the import of the question, only a reference to the admitted facts is necessary, which can be stated thus :

(3.) THE assessment relates to the year 1971-72 (with 31st March, 1972, as the valuation date) and the year 1972-73 (with 31st March, 1973, as the valuation date ). The assets involved were a one-third share in a house situated at Rani Jhansi Road and another property situated at Sohan Lal Lane exclusively owned by the assessee. For the former asset, the value returned by the assessee was Rs. 35,000. The Wealth-tax Officer accepted the value of the construction as shown by the assessee. The Wealth-tax Officer assessed the value of the plot at Rs. 80 per square yard and consequently estimated the value of the 1/3rd share of the assessee at Rs. 82,630.