Law: Wealth Tax Act, 1957

Section: 27(3)

Wealth tax------Reference---Valuation---Land exempted from Urban Land Ceiling Act--­Need not be valued on basis provided under Urban Land Ceiling Act---No question of law arises---Indian Wealth Tax Act, 1957, S.27(3). Held, that the standard adopted to value the property under the provisions of the Urban Land Ceiling Act could not be adopted to determine the market value, There was no dispute that the properties were exempted from the operation of the provisions of the Urban Land Ceiling Act by a Government order and the valuation of a property exempted from the purview of the ceiling law could not be made on the same basis as the valuation adopted to value the land within the ceiling level. The Tribunal took note of the restriction imposed in the Government order on the alienation of the lands and upheld the deduction of 10 percent. in the total value of the property determined by the wealth tax authority. That apart, the question of valuation was a pure question of fact and there was no error in the principles of valuation adopted by the Tribunal in upholding the valuation of the land. CWT v. K.S. Ranganatha Mudahar (1984) 150 ITR 619 (Mad.) ref. JUDGMENT N.V. BALASUBRAMANIAN, J.---This is a petition by the assessee to direct the Income-tax Appellate Tribunal to state a case and refer the following questions of law under section 27(3) of the Wealth Tax Act, 1957, in respect of valuation of the land for the assessment year 1988-89: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in confirming the valuation of the land of the assessee at Sembium and Madhavaram? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the land at Sembium and Madhavaram which are the subject-matter of acquisition under the Tamil Nadu Urban Land Ceiling Act should not be valued as per the compensation payable under the Act, as held by the Madras High Court in the case reported in CWT v. K.S. Rangantha Mudaliar (1984) 150 ITR 619?" The assessee admittedly is the owner of the land situated at Madhavaram and Sembium. The Assessing Officer estimated the value of the property at Madhavaram at…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492