Mandatory Rule 1BB valuation applied to a self-occupied house property, and purchase price did not override the prescribed method.

Section 7 wealth-tax valuation of a self-occupied house property was governed by Rule 1BB of the Wealth-tax Rules, which was treated as mandatory for the assessment years in question. The fact that the property had been purchased at a higher price did not displace the prescribed valuation method. The exceptions in sub-rule (5) were held inapplicable on the stated facts, so the property remained within Rule 1BB and had to be valued accordingly. The Revenue's appeals therefore failed.

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Issues: Whether the self-occupied property of the assessee was required to be valued under Rule 1BB of the Wealth-tax Rules, and whether the exceptions in sub-rule (5) excluded the property from that rule.

Analysis: Valuation of assets under Section 7 of the Wealth-tax Act is governed by the prescribed rule for house property valuation. Rule 1BB was held to be mandatory, and its applicability was not displaced by the fact that the property had been purchased at a higher price. The exceptions in sub-rule (5) were found inapplicable on the facts, and the rule was held to govern the valuation for the assessment years in question.

Conclusion: The property had to be valued under Rule 1BB, and the Revenue's appeals failed.

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