Law: Wealth Tax Act, (XV of 1963)

Section: 5(1)(xvi)

(a) Wealth Tax Act (XV of 1963)--- ----S. 5(1)(xvi)---Residential house---Exemption---Residential house of whatsoever size, if self-occupied, was exempted from wealth tax. (b) Wealth Tax Act (XV of 1963)--- ----S. 7---Valuation of intangible assets---Appellant purchased adjacent house for declared value of Rs.5 lass---Partition wall between two houses was removed to make single unit---Wealth Tax Authorities enhanced appellant's wealth on account of intangible addition---Appellant had not claimed credit for addition, there being no tangible asset---Held, A.A.C. was not justified in upholding valuation of asset which never existed to income-tax assessment---Valuation was taken as cost whereas in self-assessment valuation was assessed at fair market price on valuation date---No justification existed for further addition as asset was neither declared nor available with assessee. ORDER ABDUL RASHID QURESHI (JUDICIAL MEMBER). ---These are two further appeals pertaining to assessment years 1987-88 and 1988-89 filed at the instance of the assessee in which the orders passed by the learned A.A.C. Range-IV Lahore on 21-11-1991 and 22-10-1991 respectively have been challenged. 2. Both the learned A.R. and D.R. are present. 3. Relevant facts of the case are that the assessee an individual against whom original assessment with regard to the year 1987-88 was framed on 30-7-1988 on total wealth of Rs.7809450. The assessee preferred an appeal before the learned CIT (Appeals) who set aside the assessment vide order dated 17-10-1988. Statutory notices were served and complied with the valuation of House No.86-C New Muslim Town, Lahore was adopted at Rs.15.00 lacs and the valuation of House No.85-C, New Muslim Town, Lahore was estimated at Rs.6.00 lacs and an addition of Rs.38.00 lacs was made by the learned Wealth Tax Officer Cir-III. Lahore vide order dates 16-7-1989. For the assessment year 1988-89 original return was filed on 15-10-1988 declaring total wealth at Rs.4353447. Subsequently revised return was filed declaring total wealth as Rs.3425227. The learned Wealth Tax Officer Cir-III, Lahore estimated the value of House No.85-G, New Muslim Town, Lahore at Rs.6.50,000 and…

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