9911796707
|
Home
Issues Involved:
1. Applicability of section 7(4) of the Wealth-tax Act, 1957. 2. Whether section 7(4) is procedural or substantive. 3. Retrospective operation of section 7(4). Summary of Judgment: 1. Applicability of section 7(4) of the Wealth-tax Act, 1957: The assessee disclosed the value of his bungalow at Rs. 3,95,260 for the assessment year 1975-76 and contended it should be valued u/s 7(4) of the Wealth-tax Act, 1957. The Wealth-tax Officer rejected this contention and valued the bungalow at Rs. 15,48,600. The Commissioner of Wealth-tax (Appeals) directed the Wealth-tax Officer to adopt the value of the bungalow at Rs. 6,46,600 for the assessment year 1975-76. The Revenue appealed, arguing that section 7(4) was effective prospectively from the assessment year 1976-77 onwards. The Tribunal held that section 7(4) was procedural and applied retrospectively to all pending assessment proceedings. 2. Whether section 7(4) is procedural or substantive: The main contention of the Revenue was that section 7(4) is substantive and operates prospectively. The Tribunal, however, held that section 7(4) is a procedural provision and not a substantive provision of law, thus applying retrospectively to all pending assessment proceedings. The court concluded that section 7(4) is part of the machinery provision for determining the value of assets and is procedural in character. 3. Retrospective operation of section 7(4): The court held that procedural provisions are generally retrospective unless specified otherwise. Section 7(4) being a procedural provision, it applies retrospectively to all pending assessment proceedings. The court concluded that the Tribunal was right in holding that the assessee's property should be valued by applying the provisions of section 7(4) of the Act. Conclusion: The court answered the question in the affirmative and against the Revenue, confirming that section 7(4) of the Wealth-tax Act, 1957, is procedural and applies retrospectively to all pending assessment proceedings.
|
