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TMI Blog2005 (3) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... orrect in law in holding that the assessments were reopened under section 17 on the basis of change of opinion of the Wealth-tax Officer ? 2. Whether on facts and in circumstances of the case the Income- tax Appellate Tribunal was correct in law in holding that assessment framed under section 16(1) of the Wealth-tax Act cannot be reopened under section 17 of the Wealth-tax Act on the ground of change of opinion on the part of the Wealth-tax Officer ?" 2 The reference relates to the assessment years 1982-83 to 1985-86. 3 Briefly stated the facts giving rise to the present reference are as follows : 4 The respondent/assessee has been assessed to wealth-tax in the status of an individual He owns property No. 89/331, Deputy Ka Pad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . During the assessment years in question, section 7 of the Act as it stood reads as under : "7. Value of assets how to be determined.— (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 Assessing Officer, it would fetch if sold in the open market on the valuation date. Explanation.- the removal of doubts, it is hereby declared that the price or other consideration for which any property may be acquired by or transferred to any person under the terms of a deed of trust or through or under any restrictive covenant in any instrument of transfer shall be ignored for the purpose of determining the price suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if sold in the open market on the valuation date or, in the case of an asset being a house referred to in sub-section (4), the valuation date referred to in that sub-section. (4) Notwithstanding anything contained in sub-section (1) the value of a house belonging to the assessee and exclusively used by him for residential purposes throughout the period of twelve 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 Assessing Officer, 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 the 1st day of April, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t case the Assessing Officer while passing the original assessments had applied the land and building method for determining the value of the property in question, which is one of the well accepted and well recognized modes of valuation. Merely because by applying another mode of valuation, the value would be a little higher would not clothe the Wealth-tax Officer with the jurisdiction to proceed under section 17 of the Act, specifically when no specific mode for valuation of the assets used for commercial purpose has been prescribed by section 7 of the Act or the Rules framed therein. Thus, initiating the proceedings under section 17 of the Act on the ground that the valuation ought to have been done on the basis of the rent capitalization ..... X X X X Extracts X X X X X X X X Extracts X X X X
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