1996 (1) TMI 22 - HC - Wealth-tax

Summary

Issues: Valuation of property under Wealth-tax Act and applicability of amended provisions

The High Court of Rajasthan addressed the issue of valuation of a share in an immovable property under the Wealth-tax Act, specifically related to the application of amended provisions. The dispute arose when the Wealth-tax Officer assessed the share of the assessee in a property at a certain value, which was challenged as erroneous by the Commissioner of Wealth-tax (Appeals) due to a higher valuation by the District Valuation Officer. The Commissioner set aside the assessment and directed a fresh assessment. The Tribunal partly allowed the appeals and directed the Wealth-tax Officer to value the share of the assessee in accordance with the amended rules in Schedule III of the Act. The Revenue sought a reference to the High Court on the legality of remanding the case for valuation under the amended provisions.

The main contention revolved around whether the amended provisions on valuation, effective from April 1, 1989, would apply to the case at hand. The High Court clarified that procedural provisions, such as those related to valuation in Schedule III, are applicable to pending cases. Citing the Supreme Court judgment in CWT v. Shrawan Kumar Swarup and Sons [1994] 210 ITR 886, the court emphasized that procedural laws apply to pending cases, and the market value should be determined based on the provisions in force at the time of assessment. Since the Supreme Court's decision had settled the issue, the court found no merit in the Revenue's application to refer the question to the High Court under section 27(3) of the Wealth-tax Act.

In conclusion, the High Court dismissed the application under section 27(3) of the Wealth-tax Act, stating that the controversy had been resolved by the Supreme Court's ruling on the procedural nature of valuation provisions. The court upheld the principle that procedural laws apply to pending cases and affirmed the Tribunal's decision not to refer the question to the High Court.