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TMI Blog2009 (2) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... :- 19-2-2009 - R. C. GANDHI, ACTG. C. J. and M. N. BHANDARI J. R. B. Mathur for the Commissioner. JUDGMENT 1. The Income-tax Appellate Tribunal, Jaipur Bench, Jaipur has referred the following question in R. A. Nos. 258 to 263/JP/1988 arising out of W. T. A. Nos 32 to 37/JP/1988 for the assessment years 1975-76 to 1980-81: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that rule 1BB of the Wealth-tax Rules was applicable to work out the value of the residential property known as Samod House which was used by the assessee for self-occupation? 2. The brief facts relevant to the case are that a property known as "Samod House" was used as residential house by the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel for the Revenue and perused the record carefully. 4. The issue for our answer relates to application of rule 1BB of the Rules for the purpose of determination of value of the residential property known as "Samod House". Before referring to rule 1BB, it is necessary to refer the main provisions of sections 7(1) and 7(4) of the Act for ready reference, which are quoted hereunder: "7(1) Subject to any rules made in this behalf, the value of any asset, other than cash, for the purposes of this Act, shall be estimated to be the price which in the opinion of the Wealth-tax Officer it would fetch if sold in the open market on the valuation date … (4) Notwithstanding anything contained in sub-section (1), the value of a house belongin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. A perusal of section 7(4) reveals that if the property was in the ownership of an assessee prior to the first day of April, 1971, then its valuation would be made by the Wealth-tax Officer, which would be the value if sold in the open market on valuation date relevant to the assessment year of April 1, 1971. A perusal of the aforesaid provision reveals that the first day of April 1, 1971 is a crucial date and accordingly under the aforesaid provision, once valuation of the property is taken for the assessment year 1971-72, it would then be freezed for all subsequent assessment years. In the present matter, for the assessment year 1971-72 the valuation of the property was made. Now coming to rule 1BB, which is quoted hereunder f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ging rule 1BB of the Rules the valuation of the property having been determined for the assessment year 1971-72 and such assessments having been finalised can be redetermined for the purpose of assessment of the value of the property for subsequent assessment years. The perusal of section 7(4) of the Act reveals that once the valuation is determined for the assessment year 1971-72, then the same would be freezed for subsequent years and in the present matter the valuation of the property was determined for the assessment year 1971-72 and the said assessment has attained finality as it was not challenged and assessment years involved in the present matter are of subsequent years. 9. In view of the above, it cannot be accepted that contra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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