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TMI Blog2002 (6) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of life interest in Suhasbhai Vadilal Family Trust No. 1 and Suhasbhai Vadilal Family Trust No. 2 as determined by the actuary?" - we are of the opinion that the Tribunal as right in law in holding that the life interest of the applicant-assessee in the trust in question had to be valued only by applying the provisions of rule 1B of the Wealth-tax Rules and not by the actuarial method of valuation. - In view of the above discussion, our answers to both the questions are in the affirmative, that is, in favour of the Revenue and against the assessee. - - - - - Dated:- 19-6-2002 - Judge(s) : M. S. SHAH., K. A. PUJ. JUDGMENT The judgment of the court was delivered by M.S. SHAH J.-In this reference at the instance of the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmined as provided in rule 1B and not on actuarial valuation basis. The Tribunal confirmed the said order of the Commissioner of Wealth-tax and, therefore, this reference at the instance of the assessee. We have heard Mr. J. P. Shah, learned counsel for the assessee and Mr. Tanvish Bhatt, learned standing counsel for the Revenue. Mr. Shah submitted that rule 1B of the Wealth-tax Rules prescribing the particular method for valuation of life interest, invoked by the Commissioner of Wealth-tax was only directory in nature and, therefore, it was open to the assessee to contend that the value of her life interest was rightly accepted by the Wealth-tax Officer on the basis of the actuarial valuation report. It is submitted that actuarial valua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he valuation by the Valuation Officer. The rules for valuation are meant for valuing all kinds of assets and many of the assets present inherent difficulties in valuing them. The apex court then observed in terms that their Lordships were of the opinion that the Valuation Officer is equally bound by rule 1D, with which the court was concerned in that case, "as indeed he is bound by all the other rules made under the Act". Again in Sharvan Kumar Swarup and Sons' case [1994] 210 ITR 886 while dealing with the provisions of rule 1BB qua valuation of house property, the apex court made the following pertinent observations: "Rule 1BB of the Wealth-tax Rules, 1957, which came into force on April 1, 1979, prescribing the method for valuing a ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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