Law: Wealth Tax Act, 1957

Section: 3,12A,16(3)

Section 7 of the Wealth-tax Act, 1957 - Valuation of assets - Immovable property - Assessment year 1972-73 - Whether determination of value of property may be made by adopting more than one method and in such situation, benefit of method which is most favourable to assessee should be allowed to him - Held, yes - Whether, choice of method to be adopted for determining value of property should be left to assessee - Held, yes - Whether where property in hands of one co-sharer for same assessment year had been valued at particular figure, higher figure could not be adopted in case of another co-sharer - Held, yes Circulars and Notifications : C.B.R. Circular No. 3 dated 28-9-1957 issued by Central Board of Revenue. FACTS The assessee was the owner of 1/3rd share of the property in dispute which he valued at Rs. 73,333 on the basis of the certificate given by an estate valuer appointed by the Government. The WTO fixed the value of this property at 17 times the annual letting value of Rs. 10,270. The AAC sustained the rejection of the report of the valuer and upheld the value as fixed by the WTO. On further appeal, the Tribunal fixed the value of the property at 12 times the annual letting value. On reference, the assessee contended that if the value determined on the basis of the land and building method was more favourable to the assessee, the method of determining the value of the property on the basis of its annual letting value should not be accepted. It was further submitted that in the case of a co-sharer who held 1/3rd share of the property in question the WTO, had accepted the value of 1/3rd share as Rs. 73,333 and that a different yardstick should not be adopted in case of the present assessee. HELD C.B.R. Circular No. 3 W.T. of 1957, dated 28-9-1957, laid down that the value of lands and buildings should be estimated with due regard to the nature, size and locality of the property, the amenities available and the price prevailing for similar assets in the same locality. It also recognises the method by which the value of the property is determined for purposes of property tax under the laws and regulations relating to the municipalities and municipal…

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