1986 (8) TMI 149

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....exclusively used by the assessee for residential purposes for the previous year. Therefore, the provisions of s. 7(4) could not apply and its value could not be restricted to the value taken on 1st April, 1972. Relying on the report of the Valuation Officer of the IT Department, he took the value at Rs. 1,86,500 in the first year and Rs. 2,06,600 in the second year. On appeal, the CIT(A) restored the matter back to the IAC for fresh decision after getting a report from the Valuation Officer qua both the years in question. The assessee has come up in second appeals before us. 2. We have heard the representatives of the parties at length in these appeals. On behalf of the assessee it was contended that there was absolutely no scope for any....

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....e assessee. 4. After carefully going through these documents, we are afraid we are not wholly inclined to accept the assessee's contention. The fact that the assessee has not let out this house to anybody and the assessee's claim for exemption under s. 5(1)(Iv) of the WT Act has been allowed by the WT authorities or that the SOP value of the flat has been included in the IT assessments of the assessee would be of absolutely no consideration so far as the determination of the claim of the assessee for freezing the value under s. 7(4) is concerned. The relevant provision reads as under: (4) Notwithstanding anything contained in sub-s. (1) the value of house belonging to the assessee and exclusively used by him for residential purposes t....

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....g at Jaipur. The cl. 4 of s. 7 is an abnormal provision of law giving an artificial value to the properties held by the assessees which they exclusively used for their residential purposes throughout the period of 12 months preceding the valuation date. If the members of the assessee are having their own house elsewhere and are residing in them, they would naturally be entitled to claim the benefit of this section in relation to those houses wherein they are residing. It would be then a strange proposition of law that an HUF resides at one place and the members at other places and the residential houses occupied by the members as well as by the HUFs are separately entitled to the benefit of cl. 4 of s. 7 of the WT Act. This would be introdu....