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Issues:
1. Interpretation of Wealth-tax Act, 1957 regarding the application of rule 1BB by the Wealth-tax Officer. 2. Validity of the Commissioner of Wealth-tax's direction to reframe assessment and application of rule 1BB for property valuation. Issue 1: Interpretation of Wealth-tax Act, 1957 regarding the application of rule 1BB by the Wealth-tax Officer: The case involved a reference under section 27(1) of the Wealth-tax Act, 1957, regarding the application of rule 1BB by the Wealth-tax Officer for property valuation. The Tribunal directed the Wealth-tax Officer to apply rule 1BB for valuing a property owned by the assessee, which was self-occupied. The Tribunal held that rule 1BB, being procedural and mandatory, should be applied to all pending proceedings. The Tribunal's decision was based on the argument that the property being self-occupied, valuation should be made in accordance with rule 1BB of the Wealth-tax Rules. The Tribunal further directed the Wealth-tax Officer to apply rule 1BB and decide on the need for a reference to the Valuation Officer. The Tribunal's decision was supported by legal precedents and the Supreme Court's interpretation of rule 1BB as a rule of evidence applicable to all pending proceedings. Issue 2: Validity of the Commissioner of Wealth-tax's direction to reframe assessment and application of rule 1BB for property valuation: The Commissioner of Wealth-tax found errors in the original assessments made by the Wealth-tax Officer for the assessment years 1976-77 to 1978-79 regarding the valuation of a property owned by the assessee. The Commissioner set aside the original assessment orders and directed the Wealth-tax Officer to refer the case to the valuation cell and reframe the assessment based on the valuation cell's report. In an appeal, the Tribunal upheld the Commissioner's jurisdiction to revise the assessment and accepted the assessee's argument that rule 1BB should be applied for property valuation. The Tribunal's decision was further supported by legal precedents and the Supreme Court's interpretation of rule 1BB as procedural and applicable to all pending proceedings. Consequently, the High Court affirmed the Tribunal's decision, holding that the Wealth-tax Officer should reframe the assessment based on rule 1BB for the relevant assessment years. In conclusion, the High Court ruled in favor of the assessee, upholding the application of rule 1BB by the Wealth-tax Officer for property valuation and dismissing the Revenue's contention against the invocation of rule 1BB. The judgment emphasized the procedural nature of rule 1BB and its applicability to all pending proceedings, as established by legal precedents and the Supreme Court's interpretation.
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