Law: Wealth Tax Act, 1957

Section: 25(2),27(1)

Wealth tax-- ---- Valuation of industrial property---Revision of Assessing Officer's order by Commissioner--No finding that valuation accepted by Assessing Officer was prejudicial to revenue---Commissioner referring to material divergence - in value and setting aside assessment order---Appellate Tribunal justified in treating Commissioner's order as erroneous---No question of law arises, for reference to High Court---Wealth Tax Act, 1957, Ss.7, 25(2) & 27(1). The respondent had included in its wealth tax return an industrial property covering 4,696 square yards with the report of a registered valuer who had valued the entire property at the rate of Rs.140 per square yard. There was a report by a second valuer who had valued 1,335 square metres of the property at Rs.200 per square metre and the remaining area of 2,378.52 square metres at Rs.10 per square metre. The total valuation by the second valuer was at Rs. 2,90,877.20, whereas the total value, according to the first valuer, was Rs. 6,57,300. The Wealth Tax Officer completed the assessment adopting .the valuation by the first valuer. In suo motu revision, the Commissioner referred to the rate of Rs. 200 per square metre adopted by the second valuer as well as the rate for land given by the Ministry of Works arid Housing at Rs.1,800 per square yard for commercial land and the values varying from Rs.191 to Rs.210 per square metre in respect of land in industrial plots and values varying from Rs. 287 to 315 per square metre for commercial plots fixed by the Delhi Development Authority (D.DA.) and, without arriving at a finding that the assessment was prejudicial to the Revenue, set aside the Officer's assessment. On appeal, the Appellate Tribunal came to the conclusion that the Commissioner's order in revision was erroneous and also held that he had not given any express finding that the Wealth Tax Officer's order was prejudicial to the Revenue. The Tribunal having declined to state a case, the Department applied to the High Court for an order directing the Appellate Tribunal to state a case: Held, dismissing the petition, that apart from the fact that the Commissioner had nowhere formed an opinion that…

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