CWT Vs. RAWAL RAJESHWARSINGH OF SAMOD

JUDGEMENT

(1.) THE Tribunal, Jaipur Bench, Jaipur has referred the following question in R.A. Nos. 258 to 263/Jp/1988 arising out of WTA Nos. 32 to 37/Jp/1988 for the assessment years 1975 -76 to 1980 -81:

(2.) BRIEF facts relevant to the case are that a property known as "Samod House" was used as residential house by the assessee and the question of its value came up for consideration before the Wealth Tax Officer where such determination was made as per the provisions of Section 7(4) of the Wealth Tax Act, 1957 (for short the Act). The order of Wealth Tax Officer was then challenged before the Appellate Assistant Commissioner by the assessee. While hearing the matter by the Appellate Assistant Commissioner a question came up for consideration as to whether the valuation of property is to be determined by invoking rule IBB of the Wealth Tax Rules, 1957 (for short the Rules) as r. IBB of the Rules came by way of amendment: in the Rules and accordingly the said rule was inserted with effect from 1 -4 -1979. Taking the aforesaid rule to be procedural in nature, it was treated as retrospective. Rule IBB of the Rules provides for method of determination of value of the house and accordingly the Appellate Assistant Commissioner gave a direction to the Wealth Tax Officer to determine the value of the residential house by applying rule IBB of the Rules. The order of the Appellate Assistant Commissioner was challenged before the Tribunal by the revenue and the Tribunal maintained the order of the Appellate Assistant Commissioner. Accordingly, reference was sought as to whether the Tribunal was right in holding that rule IBB of the Rules was applicable to work out the value of the residential house. It is a case where assessment years related to 1975 -76 to 1980 -81.

(3.) THE issue for our answer relates to application of rule IBB of the Rules for the purpose of determination of value of the residential property known as "Samod House". Before referring to rule IBB, it is necessary to refer the main provisions of Sections 7(1) and 7(4) of the Act for ready reference which are quoted hereunder: