Law: Wealth Tax Act, 1957

Section: 27(3),10

Wealth tax----- ----Reference---Valuation of assets---Valuation of property on the basis of C.B.D.T. circular following income capitalisation method and ignoring sale made four years after the assessment year---Tribunal's valuation was proper--­No question of law arose from it---Indian Wealth Tax Act, 1957, S.27---CBDT Circular No. 326, dated 6-2-1982. Held, dismissing the application for reference, that it is not at all permissible for the assessing authority or for that matter the Tribunal to rely upon an event of sale which takes place subsequent to the assessment year in question to determine the value of the property as in the relevant assessment year. Such .a method is not known in the filed of income capitalisation method. On the contrary, the value is worked out from the event of sale that takes place till the assessment year if that assessment year happens to be subsequent to the year of sale. In addition to this the Tribunal could not be held to have committed an error of law in relying upon Circular No.326, dated February 6, 1952, as that circular was issued for the purpose of determining the value of the lands by following the income capitalisation method. No question of law arose for reference. Ellerman Lines Ltd. v. CIT (1971) 82 ITR 913 (SC); Navnit Lal C. Javeri v. K.K. Sen, AAC (1965) 56 ITR 198 (SC) and Varghese (K.P. v. ITO (1981) 131 ITR 597 (SC) ref. JUDGMENT K.A. SWAMI, C.J.---These petitions are filed under section 27(3) of the Wealth Tax Act, 1957, seeking a direction to the Tribunal to stare the case and refer the following question of law, which, according to the petitioner, arises in T.C.Ps. Nos. 833, 837 and 841 of 1991, relating to the assessment year 1982-83 in each case: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in upholding the order of the first appellate authority holding that the Assessing Officer should not have based the valuation on the event which occurred in 1986 and ignored the Board's Circular No. 326 (See (1982) 134 ITR (St. 167), dated February 6, 1982?" It is contended on behalf of the petitioner that the Board's Circular No.326 (see (1982) 134 ITR (St.)…

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