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TMI Blog1983 (2) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... acts and in the circumstances of the case, the learned AAC has erred in allowing exemption under section 5(1)(x) of the Wealth-tax Act, 1957 on the value of the library books amounting to Rs. 12,000." 4. Facts material, but briefly stated, are that at the assessment stage, Rs. 12,000 was taken as valuation and computed as wealth of the assessee, for the assessment years 1973-74 and 1974-75 in lieu of market value of books with the reasoning, 'not tools in the nature of mechanical device or instrument for manual work'. In appeals by the assessee, the learned AAC, by common order dated 16-9-1981 observed that the books are exempt under section 5(1)(x) of the Act, being tools and instruments used for carrying on of the profession. The additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a-vis the lawyer and the law profession and accordingly these are exempt under section 5(1)(x) and since in the case of the assessee the valuation taken by the WTO for both the years in lieu of library books stands at Rs. 12,000, the addition made by the WTO has justifiably on facts, been deleted by the learned AAC. 7. That apart, the assessment order for the assessment year 1975-76 which is dated 12-2-1980 and has been made by the WTO, Lawyers' Circle-II, New Delhi, in the case of the assessee, speaks of the factual position that no value in lieu of the assessee's books has been taken as wealth and that should suffice for deletion of the value of books for the assessment years 1973-74 and 1974-75. 8. Yet that apart, under the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The appeals by the revenue fail and stand dismissed. 11. In IT Appeal No. 2022 (Delhi) of 1981, the ground taken by the revenue, reads as under : "On the facts and in the circumstances of the case, the learned AAC has erred in reducing the value of the plot at Neeti Bagh from Rs. 38,703 to Rs. 12,340 and thereby allowing relief of Rs. 26,363." 12. Material facts, briefly stated, are that the assessee is a sub-lessee of plot No. C. 43, Neeti Bagh, New Delhi, for which she had paid lump-sum premium of Rs. 12,340. The plot is leased to Supreme Court Bar Housing Co-operative Society Ltd., the lessor being the President of India. At the assessment stage, the WTO was of the opinion that the plot is situated in Neeti Bagh in South Delhi w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal, Delhi Bench, at New Delhi, order dated 10-5-1976 made in relation to the assessment years 1967-68, 1968-69 and 1969-70 in the case of Miss Beneeta Seth, New Delhi, in WT Appeal Nos. 502, 503 and 494 of 1974-75---'A' Bench of the Tribunal, Delhi Bench, at New Delhi ; also photostat copy of perpetual sub-lease granted by Land and Building Department of Delhi Administration in favour of the assessee and the Supreme Court Bar Co-operative House Building Society Ltd. The assessee has also placed on our file extracts from the bye-laws of the House Building Co-operative Society. 13. The original lessee is the Supreme Court Bar Co-operative House Building Society Ltd. while the assessee is the sub-lessee. According to stipulation No. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia, a Scheduled Bank or a Financial Institution recognised by Government of Delhi State. 51. No member shall be permitted to transfer, sell or mortgage his plot to any person other than the members of the society or the society itself. Provided that a Member may, subject to the condition of the lease, mortgage his interest in the plot for the purpose of raising loan for the construction of a house on the said plot to the Life Insurance Corporation of India, Scheduled Bank or Financial Institution recognised by the Government of Delhi State." 15. The stipulations in the perpetual sub-lease deed and the bye-laws of the lessor Co-operative House Building Society impose restrictions on the transfer of the plot by the assessee to a non-membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... society. The reference application made under section 27(1) by the revenue was rejected by the Appellate Tribunal. In further application under section 27(3), the revenue argued that a clear question of law arose from the order of the Tribunal, as, for the purpose of valuation, the existence of an open market has to be assumed. Their Lordships or the Hon'ble Delhi High Court held as under : ". . . A leasehold right can have a market value only if a transfer is permitted under the terms of the contract. If there is only a personal right which is not transferable, then it would not be possible to value the property on the basis that it was an absolute right equal to ownership. To disregard the terms of the lease and to assume that the sub-l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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