9911796707
TMI Blog1993 (11) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... n ?" The point to be determined is whether the provisions of section 7(4) of the Wealth-tax Act, 1957, which came into force with effect from April 1, 1976, were procedural in nature and retrospective in operation in respect of value of self-occupied property and whether the value in respect of the assessment year 1971-72 was to be adopted for, the later years. The provisions of section 7(4) were inserted by Act No. 66 of 1976, with effect from April 1, 1976, which reads as under : "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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which he became the owner of the house, or on the valuation date relevant to the assessment year commencing on the first day of April, 1971, whichever date is earlier. This sub-section has frozen the value in respect of a residential property which must be used exclusively by the assessee for residential purposes throughout the period of 12 months immediately preceding the valuation date. Section 3 is the charging section and section 7 is the machinery section by which the charging section is made effective. The matter with regard to the point as to whether section 7(4) is a procedural provision and not a substantive provision and is applicable retrospectively to all pending assessment proceedings came up for consideration before the Guja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h [1994] 208 ITR 658, that the provisions of rule 1BB are retrospective in operation and would apply to assessments pending as on the date of the coming into force of the Rules. The object of the provision is to bring simplicity besides giving a benefit to the assessee in respect of valuation of property. In these circumstances, when neither the right of any person is affected nor the provisions of section 7(4) come in the way of the charging section and are only machinery provisions to make the charging section effective, the provisions of section 7(4) have to be considered as procedural and, therefore, applicable to all cases pending on the date of coming into force of the Act. In these circumstances, it is held that the Income tax Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X
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