https://www.taxtmi.com/caselaws?id=249506 The SC upheld the AO's decision to reject the assessee's self-assessment of a residential flat under the Wealth-Tax Act, 1957. The Court held that "practicable" under Rules 3-7 of Schedule III should be construed widely, allowing the AO to invoke Rule 8 when the taxpayer's valuation is absurd or lacks correlation to fair market value. The AO's discretion must be judicially exercised and objectively reasonable. Here, the AO justifiably rejected the self-assessment due to wide variation between market value and municipal tax-based valuation, the property's use as a guest house, low municipal ratable value, and the assessee's own agreement to sell for significantly higher amount. The referral to the Departmental Valuation Officer under Section 16A was proper, and wealth tax assessment based on the officer's valuation was upheld. en-us Mon, 30 Jun 2014 00:00:00 +0530 Mon, 07 Jul 2025 12:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=249506 The SC upheld the AO's decision to reject the assessee's self-assessment of a residential flat under the Wealth-Tax Act, 1957. The Court held that "practicable" under Rules 3-7 of Schedule III should be construed widely, allowing the AO to invoke Rule 8 when the taxpayer's valuation is absurd or lacks correlation to fair market value. The AO's discretion must be judicially exercised and objectively reasonable. Here, the AO justifiably rejected the self-assessment due to wide variation between market value and municipal tax-based valuation, the property's use as a guest house, low municipal ratable value, and the assessee's own agreement to sell for significantly higher amount. The referral to the Departmental Valuation Officer under Section 16A was proper, and wealth tax assessment based on the officer's valuation was upheld. Case-Laws Wealth-tax Mon, 30 Jun 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=249506