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TMI Blog1983 (11) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod of 12 months immediately preceding the valuation date for her personal occupation. 2.2. The assessee is the VIII princess of Travancore. She has a half share in the property known as Sundaravilasom Palace. Sub-section (4) of section 7 provided that the value of a house belonging to the assessee and exclusively used by him for residential purposes throughout the period of 12 months immediately preceding the valuation date may, at the option of the assessee, be taken to be the price which, in the opinion of the WTO, it would fetch if sold in the open market on the valuation date next following the date on which he became the owner of the house, or on the valuation date relevant to the assessment year commencing on 1-4-1971, whichever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty and that she was residing in the Kaudiyar Palace along with the Maharaja only in accordance with her obligation as the Maharani. With regard to the observation of the Commissioner (Appeals) that before him the learned representative for the assessee admitted that the assessee had not been residing at Sundaravilasom Palace during the 12 months preceding the valuation date, it was submitted by the learned representative that what was submitted was that the assessee was mainly residing in the Kaudiyar Palace. It was further submitted by the learned representative for the assessee that the assessee may occasionally go and reside in the Sundaravilasom Palace. It was also contended by the learned representative for the assessee that the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1982. Under this sub-clause, an assessee who maintains or causes to be maintained for him a dwelling place in India for the period stated in the sub-clause will be treated as a resident. It was pointed out by the departmental representative that while this sub-clause only required that a house should be maintained in India, sub-section (4) of section 7 of the Act requires exclusive use of the assessee for residential purposes. This is not, in our view, decisive because section 6 of the 1961 Act was intended to cover a different situation where the assessee was residing outside India. It will not be proper to contrast the same with section 7(4) of the Act. 2.5 We could not come across any decided case on sub-section (4) of section 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such an assessee will not be entitled to the benefits of sub-section (4) during the period during which he was hospitalized. Similarly, an assessee may be compelled to go and reside with his children or close relative due to unavoidable reasons. It does not seem to be the position that if during the period he locked the building he will lose the benefit of sub-section (4). Before its amendment by the Finance Act, 1970, clause (iv) of section 5(1) provided that to claim exemption under the clause, the house should be exclusively used by the assessee for residential purposes. This provision came up for consideration in CWT v. Mrs. Avtar Mohan Singh [1972] 83 ITR 52 (Delhi). The requirements of the clause were held by the High Court to be that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the WTO is the same as on 1-4-1971 and that the enhancement had been only with regard to the compound. It was claimed by the learned representative for the assessee that the house in the present case is a palace and that the land measuring 1 acre 27 cents should, therefore, be treated as land appurtenant to the house and the value of the land also allowed to be freezed under sub-section (4). In our view, the benefit under section 7(4) will be available only for the house and the land appurtenant thereto. As no particulars are available with regard to the area of the building, the unbuilt area and the manner in which the building is spread out over the plot, we would direct the WTO to allow the benefit under section 7(4) after examining and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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