1984 (10) TMI 118

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..... ave been made without the matter being referred to the valuer under section 16A of the Wealth-tax Act, 1956 ('the Act'), because the difference in value with reference to the value of the property of Maharani Talkies as a whole between that returned and that assessed would have been more than Rs. 50,000, though the value of the assessee's share between that returned and assessed was less than Rs. 50,000 in the first two years. The AAC negatived the plea and held that the mandatory reference was not called for since the prescribed limit had to be construed with reference to the value of the assessee's share alone. 2. Before us, the learned counsel submitted that the valuation of the property as a whole has to be made in the first instance .....

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..... ce under section 16A could be made. However, it is not necessary for us to pronounce on the contention of the assessee with reference to the provisions of the rule, because that rule does not apply in the present case since the assessee is only a co-owner and a co-owner is not a partner in a firm and is also not a member of an AOP as far as the facts of the present case are concerned. The asset, which the assessee in the present case has, is an undivided one-third share in the property. What is to be valued is the value of such share. May be that such valuation is to be made with reference to the aggregate value of the property but from such value, appropriate discounts, etc., have to be made. So what is being valued is eventually only the .....

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..... building was getting older. The learned departmental representative pleaded for the estimates being upheld. 5. We ascertained that the building was one which had been let out on lease. The lease was for a period of 20 years and in 1975-76, there was still about 10 years to run. The income receivable in terms of the lease was, therefore, fixed. In valuing commercial properties, income yield is a criteria. With a long period still unexpired of the lease and there being no prospect of increase in the income and the theatre building being very old, we consider that there was no material to enhance the valuation of the property at 15 per cent in the first two years as done by the WTO and to Rs. 3 lakhs in the last year. We direct that the val .....

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