Law: Wealth Tax Act, (XV of 1963)

Section: 7

Law: Wealth Tax Rules, 1963

Section: 8(3)

Wealth Tax Act (XV of 1963)---S. 7---Wealth Tax Rules, 1963, R.8(3)---C.B.R. Circular No.14(7)­W.T./IT-VI/79, dated 21-8-1979---C,B.R. Circular No.8(II)-W.T./79, dated 25-8-1982---C.B.R. Circular No.1(2),WT/94, dated 17-7-1996---Valuation of assets---Determination---Commercial building and shop---Instructions of C.B.R. in Circular No. 14(7)-WT/IT-VI/79, dated 21-8-1979 that in the case of commercial building and shops the valuation would be cost of the building to the assessee if it is used by him and has not been rented out, being expressly against the provisions contained in S.7, Wealth Tax Act, 1963 and R.8(3), Wealth Tax Rules, 1963, were ultra vires the said provisions and consequently had no binding force---Commercial property in self-occupation of assessee for his own business, therefore, could be estimated. (b) C.B.R. Circulars--- ---- Circulars, Instructions and Guidelines issued by C.B.R. in excess of jurisdiction or in express violation of the provisions contained in statute and the rules framed thereunder, have no legal validity and are not to be acted upon. ORDER Heard Mr. A.K. Shamim, learned counsel for the appellant and Mr. Ali Nasir Bokhari, learned representative for the department. The appeal is directed against the order, dated 31-5-1989 by the learned C.I.T.(A), Zone VI, Karachi in Wealth Tax Appeal No.263/A-VI relating to the assessment year 1987-88. 2. The sole objection pressed by the learned counsel for the appellant is the valuation of business premises bearing No. SB-4-6/2 and 3 in which 1/4th share is held by the appellant. The contention raised by Mr. A.K. Shamim, learned counsel for the appellant, is that the asset being business premises is not amenable to estimation by the assessing officer. In support of his contention he has placed reliance on para. 3(d) of Circular C.No.14(7)­WT/IT-VI/79, dated 21-8-1979, according to which in cases of commercial buildings and shops the valuation will be the cost of building to the assessee if it is being used by him and has not been rented out. Mr. A.K. Shamim has contended that asset under consideration is admittedly the shop wherein the appellant is doing business and, therefore, the…

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