1982 (10) TMI 87 - AT - Income Tax

Summary

Issues:
1. Valuation of asset for wealth tax assessment.
2. Challenge to the Tribunal's judgment.
3. Constitution of a Three Member Bench.

Valuation of asset for wealth tax assessment:
The case involved an appeal by the revenue against the order of the AAC concerning the valuation of an individual's share in a property for the assessment year 1974-75. The WTO had determined the net wealth, including the share in the property, at Rs. 1,24,000, while the assessee declared it at Rs. 67,466 based on a registered valuer's report. The WTO valued the share at Rs. 1 lakh using a different method than the registered valuer. The AAC directed a re-estimation based on the Wealth-tax Rules, as per a Tribunal case precedent.

Challenge to the Tribunal's judgment:
The revenue contested the Tribunal's judgment in a previous case, arguing that it was not binding as some legal questions were referred to the High Court. However, the Tribunal held that the pendency of legal questions did not invalidate the previous judgment. The revenue also challenged the constitution of a Three Member Bench in the previous case, claiming it was invalid. The Tribunal found that the Bench was properly constituted by the President of the Tribunal under relevant provisions of the Income-tax Act and Wealth-tax Act, rejecting the revenue's arguments based on the interpretation of statutory provisions.

Constitution of a Three Member Bench:
The Tribunal analyzed the relevant provisions of the Income-tax Act and Wealth-tax Act to determine the validity of constituting a Three Member Bench. It concluded that the President of the Tribunal had the authority to constitute such a Bench under the applicable laws. The Tribunal disagreed with the revenue's interpretation of the provisions and cited a previous case to support its reasoning. Ultimately, the appeal by the revenue was dismissed, upholding the Tribunal's decision regarding the valuation of the asset and the constitution of the Three Member Bench.