1994 (11) TMI 154 - AT - Wealth-tax

Summary

Issues Involved:
1. Valuation of Dashiana property for assessment years 1984-85 to 1987-88.
2. Valuation of Saijpur Bhoga property for assessment years 1984-85 to 1987-88.
3. Valuation of Himat Niwas property for assessment years 1985-86 to 1987-88.

Detailed Analysis:

1. Valuation of Dashiana Property:
The primary issue concerns the valuation method for the Dashiana property. The assessee company declared the value based on the rent capitalization method, certified by a registered valuer, which the Commissioner accepted. In contrast, the District Valuation Officer (DVO) used the land and building method, doubting the tenancy agreement and thus valuing the property significantly higher. The Tribunal noted that the Commissioner did not find any reason to doubt the tenancy agreement and considered the property's potentiality, directing the Assessing Officer (AO) to adopt the value declared by the assessee. The Tribunal, agreeing with the assessee's counsel, recognized that valuation rules are procedural and should apply retrospectively. Consequently, the Tribunal restored the matter to the AO to value the Dashiana property as per Schedule III to the Wealth Tax Act, considering Rule 3 of the said Schedule.

2. Valuation of Saijpur Bhoga Property:
For the Saijpur Bhoga property, the Commissioner remanded the issue back to the AO for re-examination. The Revenue contended that the Commissioner should have decided the valuation instead of remitting it. However, the Tribunal upheld the Commissioner's decision to restore the matter to the AO for a fresh look, thereby not interfering with the Commissioner's directive.

3. Valuation of Himat Niwas Property:
The valuation of Himat Niwas property for the assessment years 1985-86 to 1987-88 was another point of contention. The AO adopted the purchase price paid by the assessee at a court auction, while the assessee's registered valuer used the rent capitalization method. The Commissioner sided with the assessee, directing the AO to accept the value based on the rent capitalization method. The Tribunal, agreeing with the assessee's counsel, ordered the AO to work out the value of Himat Niwas as per Schedule III, similar to the directive for the Dashiana property.

Conclusion:
The Tribunal directed the AO to revalue the Dashiana and Himat Niwas properties according to Schedule III to the Wealth Tax Act, considering the procedural nature of valuation rules and their retrospective application. The Tribunal also upheld the Commissioner's decision to remand the valuation of the Saijpur Bhoga property to the AO for re-examination. The appeals were disposed of accordingly.