1999 (9) TMI 18

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..... the order of the Assessing Officer estimating the value of the property at Rs. 3 lakhs ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in applying the provisions of law contained in sub-rule (5) of rule 1BB of the Wealth-tax Rules, 1957 ?" We have heard Sri Shambhu Chopra, learned counsel for the Commissioner. No one has appeared on behalf of the assessee. The facts of the case are that the assessee was the owner of a house property bearing Municipal No. 735 and situate in Mohalla Katra in the town of Allahabad. The assessee declared its value by determining the same by applying a multiplier of 20 to its annual letting value, which was shown at Rs. 1,496. The Assessing Officer, however, noticed .....

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..... would be anomalous to adopt the value arrived at by applying rule 1BB which was disproportionately low. We have given our full consideration to the argument of learned counsel for the Commissioner as well as the view expressed by the Appellate Tribunal. Section 7 of the Wealth-tax Act provides for the method of the valuation for assessment and it begins with the words "subject to any rules made in this behalf." It means that the value has to be determined according to the rules. Various rules have been made under section 7 of the Act, which are contained in the Wealth-tax Rules, 1957, for the purpose of determination of the market value of various types of properties. Rule 1B describes the manner of valuation of life interest. Rule 1BB des .....

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..... which use the word "shall". We, therefore, find that if rule 1BB is applicable to a property then its market value has to be determined in accordance with the provisions contained in that rule and other methods stand excluded. In this view there can be no dispute that rule 1BB was applicable. The Tribunal has made a reference to sub-rule (5) of rule 1BB, which says that nothing contained in this rule, shall apply where having regard to the facts and the circumstances of the case, the Wealth-tax Officer with the previous approval of the Inspecting Assistant Commissioner is of the opinion that it is not practicable to apply the provisions of this rule to such a case. The impracticability conceived by the Tribunal appears to arise because o .....

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