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of <h1>Appellate tribunal rules HUF status for assessee, adjusts property valuation for wealth tax</h1> The appellate tribunal held that the correct status of the assessee was that of HUF, not individual, due to the property's ancestral nature. The valuation ... - Issues:1. Determination of the correct status of the assessee as individual or HUF.2. Valuation of the half-share in Pusa Road Bungalow for wealth tax purposes.Issue 1: Determination of the correct status of the assesseeThe primary contention was regarding the status of the assessee, whether individual or HUF, in relation to the property at Pusa Road, New Delhi. The deed of family arrangement indicated that the property was in the name of Smt. Shanti Kumari, who executed a will in favor of her two sons. The WTO determined the status as individual based on the will. However, the appellate tribunal disagreed, stating that Smt. Shanti Kumari was only a life interest holder in the property, and the sons inherited it by survivorship from their father, making the property ancestral. Therefore, the correct status of the assessee was held to be that of HUF, not individual.Issue 2: Valuation of the half-share in Pusa Road BungalowThe approved valuer estimated the rental income of the property and valued the full bungalow at Rs. 2,75,000, with the assessee's half-share at Rs. 1,37,500. However, the WTO disagreed and valued the property at Rs. 3,93,000 based on a higher multiple of 25 times the rental income. The appellate tribunal found the multiple of 25 to be excessive and directed the WTO to recompute the value using a multiple of 20 instead. The tribunal upheld the revised valuation and partially allowed the appeals.In conclusion, the appellate tribunal determined the correct status of the assessee as HUF, not individual, based on the ancestral nature of the property. Additionally, the valuation of the half-share in Pusa Road Bungalow was adjusted by the tribunal by reducing the multiple used for calculation, resulting in a revised valuation for wealth tax purposes.
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