2004 (9) TMI 56

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or year under consideration passed on March 27, 1979, after the receipt of the Valuation Officer's report was not erroneous insofar as it was prejudicial to the interest of the Revenue? 2. Whether on the facts and in the circumstances of the case, the hon'ble Tribunal has not misdirected itself in basing its finding that the Valuation Officer's report under section 16A not being in respect of the year under consideration, the Commissioner was not correct in considering the value of the immovable properties as on March 31, 1971, worked out therein as the basis for holding that the value adopted by the Wealth-tax Officer did not reflect the fair market value of the property within the meaning of section 7(1) of the Wealth-tax Act?" Brie....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... there was no reference under section 16A of the Act for the year under consideration and, therefore, the valuation of the property in question made by the Valuation Officer was not a material for the Commissioner of Wealth-tax to pass an order under section 25 of the Act. We have heard Sri A. N. Mahajan, learned counsel for the Revenue and Sri P. K. Jain, learned counsel for the respondent-assessee. Learned counsel for the Revenue submitted that the valuation report was very much available on the record before the Wealth-tax Officer at the time of making the assessment and, therefore, if he had ignored the same, the Commissioner of Wealth-tax was well within his jurisdiction to initiate the proceedings under section 25 of the Act as ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....gure on the relevant valuation date. The Wealth-tax Officer had not considered the said report while framing the assessment. In the case of Niranjan Kumar Hirjee [1993] 201 ITR 183 the Calcutta High Court has held that even if the subsequent fact, the sale of the property could be taken into account, the facts as were relevant at the material time show that the valuation was made correctly by taking the recognised method of valuation in determining the market value of a property occupied by the assessee. The Tribunal has taken into account the rent when the property was let out and if such letting out value was also considered, even then it could not be said that the value which was adopted to determine the valuation of the properly at t....