Law: Wealth Tax Act, 1957

Section: 27(1)

Law: Wealth Tax Rules, 1957

Section: 1BB

Wealth tax-----Reference---Valuation of property---Schedule III to Act introduced w.e.f. 1-4-1989---Procedural not substantive---Schedule applicable to all matters pending on 1-4-1989---No referable question of law arose for consideration-­Indian Wealth Tax Act, 1957, S.27(3), Sched. III---Indian Wealth Tax Rules, 1957, R.1-BB. Schedule III introduced in the Wealth Tax Act, 1957, with effect from April 1, 1989, is procedural and not substantive and all matters which were pending on April 1, 1989, are covered by the said Schedule. The market value in all such cases has to be determined in accordance with Schedule III. C.W.T. v. Sharvan Kumar Swarup & Sons (1994) 210 ITR 886 (SC) fol. C.W.T. v. Sunder Lal Gupta (1997) 225 ITR 729 (Raj.) and George (P.J.) v. C.I.T. (1998) 231 ITR 19 (Ker.) ref. JUDGMENT T. N. VALLINAYAGAM, J.---The arguments of learned standing counsel for the Department are heard. In this petition, a prayer is made to direct the Income-tax Appellate Tribunal to refer the following question of law arising out of its order, dated April 3, 1998. "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was legally justified in directing the Assessing Officer for valuation of the property as per Schedule III whereas such Schedule is effective from April 1, 1989, so applicable for the assessment year 1989-90?" The reference application under section 27(1) was rejected on the ground that the controversy is covered by the decision given in the case of C.W.T. v. Sharvan Kumar Swarup & Sons (1994) 210 ITR 886 (SC) and also the decision of the Rajasthan High Court in the case of C.W.T. v. Sunder Lal Gupta (1997) 225 ITR 729. The dispute in the present matter pertains to the assessment years 1985-86 to 1988-89. Schedule III was inserted in the Wealth Tax Act, with effect from April 1, 1989. According to the Revenue; the valuation should have been done in accordance with rule 1-BB of the Wealth Tax Rules, which was in force during the relevant time. Reliance is placed on the decision given in the case of P. J. George v. C.I.T. (1998) 231 ITR 19, wherein the Kerala High…

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