Law: Wealth Tax Rules, 1963

Section: 8(3)

Law: Wealth Tax Act, (XV of 1963)

Section: 7(1)

Wealth Tax Rules, 1963----R. 8(3) first proviso---Valuation of rented out property---Value of property was declared @ 10 times of gross annual letting-value ---Previous two years were assessed on the same basis ---Assessee himself declared higher value of its property in the income tax record on the basis of revaluation of such property by the valuer and surplus amount was included in the books of accounts as "surplus on revaluation of fixed assets" ---Assessing Officer assessed/adopted the higher value for wealth tax purposes of the said property as declared in the Income Tax record than the ten times of the gross annual letting value of such property under R.8(3) of the Wealth Tax Rules, 1963 which was upheld by the First Appellate Authority---Contentions of the assessee were that property was 80 years old and actually let out, that property should be assessed @ 10 times of its gross annual letting value in accordance with first proviso to R.8(3) of the Wealth Tax Rules, 1963 and that professional revaluation done by the valuer was purely notional and property was occupied by tenants which did not warrant the Assessing Officer to determine its value at a sum higher than ten times of its gross annual letting value---Validity---First Proviso to R.8(3) of Wealth Tax Rules, 1963 did not permit the Assessing Officer to assess the value of house property on any basis other than their gross annual rental value---Exception allowed in the first proviso to R. 8(3), Wealth Tax Rules, 1963 was the option to assess the value at more than ten times of the gross annual rental value with the prior approval of the Commissioner and while exercising such discretion reasons were to be recorded in writing---First Appellate Authority, misdirected itself in upholding the assessment which in circumstances was not sustainable in law---Order was set aside by the Appellate Tribunal with the directions to assess the value of property de novo keeping in view the ratio of decision by the Appellate Tribunal. 1989 PTD (Trib.) 859; W.T.A. No. 692/HQ.of 1990-91, dated 11-12-1993 and 1995 PTD (Trib.) 1445 rel. Ghulam Din Zia v. CWT, Lahore 1990 PTD 442; P.V. Reddy v. CWT (1972) 85 ITR 132,…

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