Wealth-tax valuation reference allowed where the later year depended on an earlier year's pending valuation question.

Where the valuation for assessment year 1979-80 depended on the valuation of the same property for assessment year 1974-75, which was already pending before the Court, the common question of law was treated as suitable for reference under section 27(3) of the Wealth-tax Act, 1957. The Tribunal was therefore directed to draw up the statement of case and refer the formulated question concerning valuation of Prem Prakash Cinema to the Court.

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Issues: Whether the application under section 27(3) of the Wealth-tax Act, 1957, deserved to be allowed and the Tribunal directed to refer the proposed question of law concerning valuation of Prem Prakash Cinema for assessment year 1979-80.

Analysis: The valuation adopted for assessment year 1979-80 was stated to depend upon the valuation of the same property for assessment year 1974-75, which was already under consideration before the Court. In view of that interdependence, the matter was treated as fit for a reference of the proposed question of law.

Conclusion: The application was allowed and the Tribunal was directed to draw up the statement of case and refer the formulated question of law to the Court.

Ratio Decidendi: Where the valuation in the year in question is dependent on an issue already pending for decision in relation to an earlier year, a reference under section 27(3) of the Wealth-tax Act, 1957, is to resolve the common question of law.

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