Law: Wealth Tax Act, (XV of 1963)

Section: 23

Law: Wealth Tax Rules, 1963

Section: 8(3)

Wealth Tax Rules, 1963----R.8(3)---Determination of value of land and building with fixtures and fittings---Principles---Rule 8(3) of the Wealth Tax Rules. 1963 prescribes the method for determination of value of lands and buildings and in assessing value of lands and buildings under the said Rule, only the rent charged for land and building could be taken into consideration and not the rent charged for fixtures and fittings---Only one exception to the said Rule was the case where fixtures and fittings were an integral part of the land and building and rent charged for the same could not be separated from the rent of the building---Assesses, in the present case was charging separate rent for fixtures and fittings and the same had been provided in the lease agreement itself---List of accessories had been produced and from a glance at the list one could easily see that these accessories or fittings were not integral part of the building and were separable from, the .same---Rent charged for fixtures and fittings could not, in circumstances, be clubbed with the rent of the building for computation of value of assessee's property on the basis of ALV under R.8(3) of the Wealth Tax Rules, 1963. (b) Wealth Tax Rules, 1963--- ----R. 8(3)---Valuation of fixtures and fittings---Determination--­Connivance of lessor with lessee---Effect---Items of fittings, value of which had been declared at Rs. 1,25,000 could not obviously fetch a rent of Rs. 1,20,000 in a year---Rent of these items, according to a fair and independent assessment, could not be more than Rs. 3,000 per month in any case---Allegation of the Department that rent had been allocated in the agreement deed with connivance of the lessee obviously could not be ruled out in circumstances. ORDER MUHAMMAD SHARIF CHAUDHRY (ACCOUNTANT MEMBER).---Cross---appeals have been filed---by revenue as well as by assesses---against appellate order, dated 12-6-1996 passed by Commissioner of Income Tax/Wealth Tax (Appeals Zone-I), Lahore under section 23 of the Wealth Tax Act for the years 1994-95 and 1995-96. The issues raised in grounds of appeals by both the parties pertain to valuation of assessee's house No. 62D/B, Lahore for…

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