9911796707
TMI Blog1976 (3) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... ,774. The status of the assessee was described in the tabular heading over the assessment order as individual. 3. The dispute before us as per the original memorandum of appeal relates to two items. 4. Shri Nirbhai Singh owned as on the said valuation date two cars, one of the value of Rs. 20,000 and the other of the value of Rs. 6,000. Exemption in respect of the said two assets had been claimed under cl. (viii) of s. 5(1) of the Act on the plea that the said cars were articles intended for the personal or household use" of Shri Nirbhai Singh. The Tax Officer allowed exemption in respect of the car, the value of which was Rs. 20,000 but disallowed exemption in respect of the second, car impliedly on the ground that exemption could be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is common case of the parties that Shri Nirbhai Singh had 9/16th share in the capital and the assets of the said firm. According to sub-r. (1) of the said r. 2 the net wealth of the partnership firm had to be determined in the first instance. The said firm owned inter alia two assets, which were immovable. One was known as Moti Theatre and the other known as Roxy buildings. The Roxy building is used as a godown and the building known as Moti Theatre is used for exhibiting pictures and it includes some fittings also. The dispute about the valuation of the assessee's interest in the said firm is confined in the present appeal only to the valuation of the said two buildings i.e. Moti Theatre and Roxy building. Though a little confusing, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eased rate of rent was worked out by applying a multiple of 20 after deducting outgoings to the tune of Rs. 8,069 by way of property tax and house tax. The net annual value so arrived at was Rs. 21,931. The Tax Officer also mentioned that as the said enhanced valuation had been accepted by Shri Bhagwan Das, another partner in the firm Moti Theatre to the extent of 5 annas share in the firm's profit, the said assessee also should be. Similarly, in respect of the Roxy building, the value was enhanced from Rs. 80,000 to Rs. 1,60,000. This enhancement was stated to be made on the basis of income-tax record of the firm Roxy Theatre. 9. On appeal, the Appellate CIT gave some relief, as respects the value of the said two buildings. The value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion effecting withdrawal of the circular relied upon by the assessee. The assessee's argument thus succeeds. In the result, the valuation of the two buildings in question would merit to be fixed for the assessment year under consideration on the basis of the same figures as were adopted in the assessment for the asst. yr. 1968-69. We hold accordingly. 11. The second argument of the assessee is that the enhancement of value of the building in question by the Tax Officer cannot be sustained as the said Officer did not follow the provisions contained in s. 16A(i), WT Act, which section runs as under :— "16.A. Reference to Valuation Officer (1) for the purpose of making an assessment (including an assessment in respect of any assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said interest of the assessee, the firm's net Wealth as contemplated under r. 2(1), WT Rules, the evaluation of the aforesaid two buildings became necessary and that, therefore, s. 16A could apply, we shall consider under what portion of s. 16A(i) the present case falls. 13. Clause (a) of s. 16A(1) will not be attracted in as much as the assessee admittedly submitted no estimate made by a registered valuer as to the value of either of the buildings in question so far as the valuation date relevant to the instant assessment year is concerned. 14. Clause (b) of s. 16(1), as reproduced here-in-above, has two parts. Assessee does not suggest that sub-cl. (ii) thereof has any relevancy to the present case. Sub-clause (i), as read with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted as correct. The only consequence of WTO's failure to refer the valuation to the Valuation Officer would be that the enhancement cannot be sustained beyond the prescribed limit. We hold accordingly. 17. Lastly it was argued by the assessee that the enhancement in the present case has been made in respect of Moti Theatre building on the plea that the annual lease rent stood raised to Rs. 30,000 on 31st march, 1969 from Rs. 24,000 as on 31st March, 1968 and that instead of taking one particular year's gross rent into consideration, the Department should have taken into consideration the prevailing rent, which is capable of being maintained. In this connection, the following portion at page 40 of the 1970 edition of the Park's "Principl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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