Law: Wealth Tax Act, (XV of 1963)

Section: 2(16)(2)(ii),7,46

Law: Wealth Tax Rules, 1963

Section: 8(3)

(a) Wealth Tax--- ----Valuation---Valuation by bank for loan purpose---Adoption of--­Validity---Neither the value of assessee's godown could be assessed on the basis of bank report nor it could be estimated in accordance with the history of the case without any cogent reason. (b) Wealth Tax Rules 1963---R.8(3)---Wealth Tax Act, 1963, Ss.7 & 46---Valuation of land and building---Value of godown was assessed by the Assessing Officer as adopted by the Bank for purpose of advancing loan---Validity---Method of valuation of assets and properties is prescribed by law according to its objective---Valuation of assessee's godown as assessed by banker under banking laws for the purpose of advancing bank loan is neither binding on the Assessing Officer nor it has any persuasive value under the Wealth Tax Act, 1963---Wealth Tax Act, 963 prescribed its own-method of valuation of assets of the wealth tax assessees and binds wealth tax officers to follow the method in assessments---Section 7 of the Wealth Tax Act. 1963 prescribes the method for determination of value of assets and states that the value of any asset, other than cash for the purpose of Wealth Tax Act, shall be estimated by the Assessing Officer in accordance with the Rules made under S.46 of the Wealth Tax Act, 1963---Value of lands and building according to the Rules shall be estimated with due regard to the nature and size of the property, the amenities available and the price prevailing for similar property in the same locality or in its neighbourhood---Value of any immovable pro­perty (other than an open plot of land) could not be determined by the Assessing Officer at a sum higher than 10 times the gross annual rental value of such property except, with the approval of the Commissioner--­Assessing Officer had based his assessment of value of assessee's godown on the report of the Bank and had not made a fair estimate of the Annual Letting Value of the said property after confronting the asses­see---Assessing Officer although had mentioned in his assessment order about the approval of the Commissioner but it was not known how the approval had been taken when no fair estimate of the Annual Rental Value of…

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