9911796707
TMI Blog1991 (3) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case, the Tribunal was right in holding that the assessee was not entitled to deduction of the estimated notional amount of capital gains tax ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the compulsory deposit in the Compulsory Deposit Scheme (Income-tax Payers) Account under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, was to be taken into consideration in computing the net wealth of the assessee ?" There is an additional question in R. A, Nos. 119 and 134/(Cal) of 1987, which is as follows : "3. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the Circular No. F. No. 6/8/68W. T. dated September 20, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by an approved valuer for one assessment year, was to be accepted for the subsequent two years also and that the valuation for the assessment year 1978-79 made by the registered valuer should have been accepted for the next two assessment years 1979-80 and 1980-81 also. Opposing this contention, the Departmental representative contended that the said circular was applicable to the assessment year 1968-69 and the two succeeding assessment years 1969-70 and 1970-71 only as has been clarified by the subsequent Circular F. No. 6/11/69-W. T. dated July 3, 1969. The Tribunal noticed that, by its order dated October 3, 1986, in Wealth-tax Appeals Nos. 455 and 456(Cal) of 1986 in the case of Raghupati Singhania (H. U. F.), the Tribunal catego ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssets does vary from time to time, it may not be possible for the Wealth-tax Officers to invariably adopt the same value for an asset over a period of three years. However, ordinarily, they would not disturb the valuation placed on a particular asset for the assessment year 1968-69 while making the wealth tax assessments of the two assessment years immediately following, unless the circumstances of the case clearly justify a deviation from the past assessed value." The letter dated September 20, 1968, mentioned in the aforesaid circular is to the following effect : "Attention of the Commissioner is invited to the clarification given with regard to the valuation of immovable property and jewellery in the wealth-tax guidance notes recently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of an asset as determined in the assessment for 1968-69 will be necessary only where there has been substantial alteration in, or addition to, the asset or circumstances or events have intervened having the effect of increasing or decreasing the value of the asset to a significant extent. Instances of such circumstances and events are damage to property due to floods, earthquakes or other causes, new developmental activities undertaken by the State in the locality in which the property is situated or, in the case of jewellery, a sharp increase or decrease in the price of gold or precious stones. It has been stated in the guidance notes that, in cases where the taxpayers have entrusted the valuation of their assets to approved valuers, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified that adjustments will be permissible "where there has been a substantial alteration in .... having the effect of increasing or decreasing the value of the asset to a significant extent." Except raising the contention that the said circular will govern the valuation for all the years subsequent to the assessment year 1968-69, no argument was advanced on the merits. Having regard to the facts and circumstances of the case and having regard to the intent and purport of the said circular, we are of the view that the Tribunal was justified in holding that the circular cannot affect the valuation for any assessment year other than assessment years 1968 69 to 1970-71. For the reasons aforesaid, we answer the third question in the affirmat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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