Law:

Section:

Section 27(3), read with section 7, of the Wealth-tax Act, 1957 - Reference - Question of law - Assessment years 1959-60 to 1961-62, 1963-64 and 1964-65 - Two residential houses belonging to assessee were valued on land and building method instead of rent capitalisation method, even though one of them was let out fully on rent - Said properties were sold subsequent to relevant assessment years but their sale value was made basis of working out market value - Whether any referable question of law arose out of Tribunal's aforesaid findings - Held, yes - Whether Tribunal's further finding that there was no evidence to show that there was any liability of assessee towards unearned increase was a question of fact and no referable question of law arose - Held, yes FACTS The two house properties at 'P' and at 'B' belonging to the assessee and used for residential purposes, were valued for purposes of wealth-tax assessments on land and building method, instead of the rent capitalisation method. The assessee contended that the Tribunal's conclusion to value the residential house at 'B' on land and building method was vitiated as based on no evidence, irrelevant evidence and surmises. As regards the property at P, the assessee contended that the same had been let out during the relevant assessment years, and as such should have been valued on rent capitalisation method and reliance on the sale of such property to the tenant subsequently was vitiated by law. The assessee further contended that liability towards unearned increase should be taken into consideration while determining value of land. On an application under section 27(3): HELD The Tribunal had concluded that there was no evidence on record to show that there was any liability of the assessee towards unearned increase. This was a finding of fact and in this view of the matter, no referable question arose out of the Tribunal's finding in this regard. The further question as to whether rule 1BB of the Wealth-tax Rules, 1957 was applicable or not was a pure question of law. The question as to whether property let out on rent should be valued as per land and building method or rent capitalisation method is also a…

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