CWT Vs. RANI ROOPRAJ LAXMI

JUDGEMENT

(1.) THE Tribunal, Jaipur Bench, Jaipur has referred the following question in R. A. Nos. 227 to 235/Jp/1987 arising out of WTA Nos. 20 to 28/Jp/1987 for the assessment years 1972 -73 to 1981 -82:

(2.) BRIEF facts relevant to the case are that property known as "Samod House" was used by the assessee as residential house and accordingly Wealth Tax Officer valued the said property at the different values for the assessment years 1972 -73 to 1981 -82. The said property was earlier assessed at the value of Rs. 2,50,000 for the assessment year 1971 -72 by the Commissioner (Appeals). The assessee claimed that as per the provisions of Section 7(4) of the Wealth Tax Act, 1957 (for short 'the Act'), value of the property was required to be freezed at Rs. 2,50,000 and the same value should have been taken for the subsequent assessment years. It is stated that 1st April, 1971 is a crucial date as per the provisions of Section 7(4) of the Act as assessee was owner of the property even prior to 1971. The order passed by the Wealth Tax Officer was challenged by the assessee and Appellate Assistant Commissioner held that the value of the property as taken in the year 1971 -72 i.e., Rs. 2,50,000 should be taken as value of the property for subsequent assessment years also. The order of the Appellate Assistant Commissioner was challenged before the Tribunal by the revenue, but the Tribunal confirmed the order of Appellate Assistant Commissioner. Thus, the revenue sought reference to the question referred to above.

(3.) THE prime question involved for our consideration is that the interpretation of Section 7(4) of the Act. For consideration of the aforesaid provision, it is quoted hereunder: