9911796707
TMI Blog2007 (7) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... Chennai Bench "B", Chennai in W.T.A. Nos.2/Mds/2000, 83/Mds/96, 84/Mds/96 and 146/Mds/95 dated 17.02.2006 raising the following common substantial question of law:- "Whether in the facts and circumstances of the case, the Tribunal was right in directing the assessing officer to invoke specific rules 3, 4 5 of Schedule III of the Wealth-tax Act when the transaction of lease is between sister concerns, without giving the assessing officer the option of applying Rules 8 and 20, even if they are found to be relevant ?" 2. When the matter came up on 05.02.2007, notice was ordered by this Court returnable in two weeks. Private notice was also permitted. Inspite of the same, there is no appearance on behalf of the respondent. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ules 3, 4 and 5 of Schedule III of the Wealth-tax Act alone and hence the discretionary powers of the Officer are restricted by the specific remand. Hence the Revenue may not have the option to apply the Residuary Rules, Viz. Rules 8 and 20, if situation warrants. 5. Heard the counsel. The Tribunal held that the assessee is subject to wealth-tax and for the purpose of determining the value of the immovable property, the Tribunal remanded the matter with a direction to the Assessing Officer to apply Rules 3, 4 and 5 of the Schedule III of the Wealth-tax Act. The order of the Tribunal reads as under : "13. We have gone through Schedule III wherein Rule 3 Part B for determining the value of the immovable property has been provided. Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rule 3, 4 5 of Schedule III of the W.T. Act and direct the Assessing Officer to take the annual rent as declared in the income-tax returns." 6. The only grievance of the Revenue is that the Tribunal has specifically mentioned only the Rules 3, 4 5 to be invoked and directed the Assessing Officer to determine the value of the property. Schedule-III of the Wealth-tax Act deals with rules for determining the value of assets. Part B of Schedule-III deals with immovable property and Rule 3 deals with valuation of immovable property. Rule 4 deals with net maintainable rent how to be computed. Rule 5 deals with gross maintainable rent how to be computed. Rule 6 deals with adjustments to value arrived at under Rule 3, for unbuilt ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. (2) Notwithstanding anything contained in sub-rule (1), where the valuation of any asset referred to in that sub-rule is referred by the Assessing Officer to the Valuation Officer under section 16A, the value of such asset shall be estimated to be the price which, in the opinion of the Valuation Officer, it would fetch if sold in the open market on the valuation date. (3) Where the value of any asset cannot be estimated under this rule because it is not saleable in the open market, the value shall be determined in accordance with such guidelines or principles as may be specified ..... X X X X Extracts X X X X X X X X Extracts X X X X
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