2001 (9) TMI 27

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....lue of the property at Rs.14,92,964, Rs.2,03,123, Rs.1,91,663 and Rs.1,91,663, respectively. The Wealth-tax Officer took the value of the property at Rs.35,39,844, Rs.40,27,951, Rs.46,19,685 and Rs.61,98,557, respectively, in accordance with the Valuation Officer's valuation. On appeal, the Commissioner (Appeals) ordered to compute the value of the property by applying rule 1BB for the assessment year 1984-85 and directed that the same value should be repeated for the assessment years 1985-86 to 1987-88 in view of the provisions of section 7(4) of the Wealth-tax Act, 1957. The Department preferred appeals to the Tribunal and the Tribunal confirmed the decision of the appellate authority for the assessment year 1984-85, and for the ass....

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....x Act, 1957. The assessee's contention is that it is entitled to the benefits under section 7(4) since it is a Hindu undivided family. The Tribunal found that for applying the provisions of section 7(4), two important conditions must be fulfilled, i.e., the house should be used exclusively for residential purposes and the user must be for a full period of 12 months immediately preceding the valuation date and in this case, for the assessment year 1984-85, the assessee did not occupy the house for 12 preceding months prior to the valuation date and, therefore, section 7(4) does not apply for that assessment year, however, at the same time, the house remained to be a residential quarter despite the fact that it was used only for a few months ....

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....uary, 1984. So, the assessee became the owner of the completed house from February, 1984. So, the next following valuation date will be March 31, 1984. The Tribunal found that whatever may be the price which the property would fetch if sold in the open market as on March 31, 1984, would constitute its price for the purpose of section 7(4) and, admittedly, the value of the house as on March 31, 1984, was returned at Rs.15,86,143. The Wealth-tax Officer, took the value of the property as Rs.35,39,844, Rs.40,27,951, Rs.46,19,685 and Rs.61,98,557. The Tribunal found that the value of the house was Rs.15,86,143 for each of the assessment years 1985-86 to 1987-88 as that was the market value as on March 31, 1984. The legal position is that the....