9911796707
|
Home
Issues: Valuation of a flat for wealth tax purposes, applicability of Rule 1BB of Wealth-tax Rules, direction to make a reference to Valuation Officer under section 16A of Wealth-tax Act, permission to raise additional plea regarding share valuation under Wealth-tax Act.
Valuation of Flat for Wealth Tax Purposes: The dispute in this case revolves around the valuation of a flat in Bombay for wealth tax assessment. The assessee, a private limited company, purchased the flat in 1960-61 and initially valued it at Rs. 21,950, later revised to Rs. 50,250 based on a report from an Approved Valuer. The Assessing Officer, however, valued the flat at Rs. 6,28,125 for each assessment year, capitalizing it at 12.5%. The main contention was whether Rule 1BB of the Wealth-tax Rules, which governs the valuation of residential flats, should be applied in this case. Applicability of Rule 1BB of Wealth-tax Rules: The assessee argued that the valuation of the flat should be done in accordance with Rule 1BB of the Wealth-tax Rules, citing decisions of the Tribunal and the Bombay High Court to support their stance. They contended that the CWT (Appeals) erred in setting aside the assessment and directing a reference to the Valuation Officer under section 16A of the Wealth-tax Act. The assessee emphasized that the valuation should have been determined by the departmental authorities as per Rule 1BB, specifically for residential flats of the company. Direction to Make a Reference to Valuation Officer under Section 16A: The CWT (Appeals) set aside the assessments, directing the WTO to make a reference to the Valuation Officer, invoking section 16A(b)(i) of the Wealth-tax Act. The assessee argued that the CWT (A) had no authority to direct the Assessing Officer to make such a reference post-assessment, citing relevant court decisions. On the other hand, the revenue representative supported the CWT (A)'s order, asserting that the appellate authority could indeed direct such a reference due to the pending appeal. Permission to Raise Additional Plea Regarding Share Valuation: The assessee sought permission to introduce an additional plea regarding the valuation of shares held in a company, contending that it falls outside the purview of Wealth-tax under section 40 of the Finance Act, 1983. The revenue representative opposed this plea, arguing that it was inconsistent with the assessee's previous stance. The tribunal rejected the plea, noting that the new claim contradicted the assessee's earlier assertions and required further investigation. Conclusion: The tribunal held that the appeals by the assessee lacked merit and were consequently dismissed. The valuation of the flat, applicability of Rule 1BB, the direction to make a reference to the Valuation Officer, and the permission to raise an additional plea were thoroughly analyzed and decided upon in this judgment.
|
