Residential property valuation under Rule 1BB governs retrospectively, and Rule 2B(2) does not apply without a 20% excess.

Rule 1BB of the Wealth-tax Rules was treated as the governing method for valuing a house wholly or mainly used for residential purposes, and its procedural character supported retrospective application. On that basis, the immovable residential property had to be valued under Rule 1BB. As the value so determined did not exceed the book value by 20 per cent, Rule 2B(2) was inapplicable to the property.

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Issues: Whether, in valuing an immovable residential property under the Wealth-tax Act, Rule 1BB of the Wealth-tax Rules, 1957 applied retrospectively as a procedural provision and whether Rule 2B(2) could be invoked when the value determined under Rule 1BB did not exceed the book value by 20 per cent.

Analysis: The Tribunal's view was tested against the settled principle that Rule 1BB governs the method of valuation of a house wholly or mainly used for residential purposes and is procedural in character. On that basis, the valuation had to be made by applying Rule 1BB. Since the value so arrived at did not exceed the book value by 20 per cent, Rule 2B(2) was held to have no application to the immovable property.

Conclusion: The question was answered in the affirmative, in favour of the assessee and against the Revenue.

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