Valuation question of law requires High Court reference where Tribunal's refusal rests on legal reasoning about market value.

Where the Tribunal's valuation conclusion depended on a legal issue, namely whether the potential value of land could be added in assessing the assessee's right in the property, a question of law arose for the High Court's consideration. The Tribunal's reliance on an earlier High Court decision did not justify refusing a reference, because the legal basis of the valuation dispute required judicial determination on merits. The assessee's contention that valuation should be made under rule IBB of the Wealth-tax Rules, 1957, was also left open for the High Court. The refusal to refer was held unsustainable, the orders were set aside, and the Tribunal was directed to state the case and refer the question.

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Issues: Whether the Tribunal was justified in declining to refer the question relating to the market value of the assessee's right in the property for the High Court's decision.

Analysis: The Tribunal had relied on an earlier High Court decision to conclude that the potential value of the land could not be added while assessing its value. That gave rise to a question of law requiring consideration by the High Court. The assessee's contention that valuation should be made under rule IBB of the Wealth-tax Rules, 1957 was also left available for consideration by the High Court while answering the reference on merits.

Conclusion: The refusal to call for the reference was unsustainable and the matter had to be referred to the High Court.

Final Conclusion: The appeals succeeded, the impugned orders were set aside, and the Tribunal was directed to draw up a statement of case and refer the question to the High Court for decision on merits.

Ratio Decidendi: Where the Tribunal's conclusion turns on a legal issue affecting valuation, and a question of law arises from its reasoning, the High Court must call for a reference and decide the question on merits.

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