COMMISSIONER OF WEALTH TAX Vs. MAN BAHADUR SINGH

JUDGEMENT

(1.) THE Income -tax Appellate Tribunal, Jaipur Bench, Jaipur, has referred the following questions of law arising out of its order in respect of the assessment years 1971 -72 to 1975 -76 under Section 27(1) of the Wealth -tax Act, 1957 :

(2.) THE brief facts of the case are that the assessee filed a return of its net wealth on the basis of the report of the registered valuer but the Wealth -tax Officer referred the matter for valuation to the Departmental Valuation Officer under Section 16A of the Wealth -tax Act and framed the assessments in conformity with the report of the Valuation Officer. The assessed wealth included immovable property which was self -occupied. In the self -occupied property the area of 901 sq, metres was under self -occupation and 319 sq. metres was let out. While valuing the immovable property which was partly under self -occupation, the Valuation Officer and the Wealth -tax Officer did not give due consideration to the statutory Rule 1BB of the Wealth -tax Rules. The Appellate Tribunal set aside the order of the lower authorities and restored the matter back to the file of the Wealth -tax Officer for fresh decision in accordance with law and in tune with the decision of the Appellate Tribunal, Special Bench, Delhi 'A', referred to above. It was also observed that valuation in respect of property other than self -occupied property will also be subject to valuation afresh and the assessee will be entitled to place any evidence on the file of the Wealth -tax Officer, if he so desires.

(3.) THE Allahabad High Court in CWT v. Laxmipat Singhania : [1978]111ITR272(All) while interpreting the provisions of rules 1C and 1D, has held that those rules prescribed the method of valuation of unquoted preference shares and unquoted equity shares respectively. The criteria prescribed by the rules was held applicable to pending assessments of the assessee even though such assessments related to assessment years prior to the date of the coming into force of those rules and the relevant valuation dates were also prior to that date. Reliance was placed on the decision of the apex court in the case of Izhar Ahmad Khan v. Union of India, : AIR1962SC1052 and at page 1063, it was observed as under :