Procedural valuation rules apply to pending proceedings, allowing Rule 1BB-based valuation despite later statutory insertion.

Rule 1BB of the Wealth-tax Rules, 1957 was treated as a procedural and evidentiary valuation rule, so it applied to proceedings pending when it came into force. On that basis, the Appellate Tribunal was justified in directing valuation under section 36(3) of the Estate Duty Act, 1953 read with Rule 1BB, even though the death occurred before section 36(3) commenced. The later insertion of section 36(3) did not bar use of the recognised valuation method in the pending reference, and the issue was answered in favour of the assessee.

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Issues: Whether the Appellate Tribunal was justified in directing valuation of the property under section 36(3) of the Estate Duty Act, 1953, read with rule 1BB of the Wealth-tax Rules, 1957, when the death occurred before section 36(3) came into force.

Analysis: Rule 1BB of the Wealth-tax Rules, 1957 was treated as a rule of evidence and therefore procedural in character. A procedural valuation rule applies to proceedings pending when it came into force, and the valuation method it prescribes is a recognised and accepted one. The subsequent insertion of section 36(3) did not prevent application of the rule to the pending reference.

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

Ratio Decidendi: A valuation rule that is procedural and evidentiary in nature applies to pending proceedings, even if the substantive statutory provision was brought into force later.

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