Procedural valuation rules may apply to pending wealth-tax assessments, making the rule 1BB issue referable as a question of law.

Rule 1BB of the Wealth-tax Rules, 1957 was treated as a procedural valuation provision capable of applying to assessments pending when it came into force on 1 April 1979, including earlier assessment years. The Delhi HC noted that earlier decisions did not remove the need to examine the rule's applicability in the specific factual and legal context of the cases before it. On that basis, the Court held that the Department's request raised a question of law fit for reference, and directed the Tribunal to state the case and refer the valuation issue under rule 1BB.

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Issues: Whether a question of law arose for reference on the applicability of rule 1BB of the Wealth-tax Rules, 1957 to pending wealth-tax assessments.

Analysis: The dispute concerned whether rule 1BB, which came into force on 1 April 1979, could be applied to assessment years earlier than 1979-80. The rule was treated as a procedural provision, and procedural provisions may operate retrospectively in the sense that they apply to assessments still pending when the rule commenced. The existence of earlier decisions on the subject did not make the reference unnecessary, because the applicability of the rule had to be considered in the proper factual and legal context of these cases. On that basis, the Court held that the Department's reference request raised a question of law fit for decision by the Court.

Conclusion: The reference was directed and the Tribunal was required to state the case and refer the question concerning valuation of the property under rule 1BB of the Wealth-tax Rules, 1957.

Final Conclusion: The judgment accepted that the applicability of rule 1BB to pending assessments presented a referable legal question and sent the matter to the Tribunal for a consolidated statement and reference.

Ratio Decidendi: A procedural valuation rule may apply to assessments pending on the date of its commencement, and that issue can constitute a question of law warranting reference.

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