WEALTH TAX OFFICER Vs. BRIG DEWAN SINGH
INCOME TAX APPELLATE TRIBUNAL
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J. KATHURIA, A. M. : -
(1.) THE only effective issue involved in these appeals by the Revenue for asst. yrs. 1982-83, 1983-84 and 1984-85 is whether the self-occupied property of the assessee situated at House No. 79, Sector 8-A, Chandigarh is to be valued as per the provisions contained in r. 1BB of the WT Rules or not.
(2.) Brief facts of the case are these. The assessee purchased the above property in February, 1982 for a sum of Rs. 9,05,000. In the returns of net wealth, however, the assessee showed the value of this property at Rs. 4,40,000 on the basis of r. 1BB. The Assessing Officer, however, took the price actually paid by the assessee for the purchase of the property i.e., Rs. 9,05,000. The assessee preferred appeals and the learned CWT(A) after examining the position in detail held that r. 1BB was mandatory. He accordingly directed the WTO to recompute the value of the house in question in accordance with r. 1BB. The CWT(A) examined the exceptions provided in sub-cl. (5) of r. 1BB and held that these exceptions were not applicable in the instant case and the property in question had to be valued as per r. 1BB. The Revenue has come in appeal before us.
Shri D. V. Arora, the learned Departmental Representative, submitted that the assessee had purchased the property in question on 17th Feb., 1982 and that it would be unfair and inequitous if the value of the property was to be taken at a figure less than what had been paid by the assessee as purchase price.
(3.) SHRI D. S. Gupta, the learned counsel for the assessee, submitted that r. 1BB of the WT Rules was mandatory. Inviting our attention to the Supreme Court decision in the case of Bharat Hari Singhania vs. CWT 119 Taxation 112 he submitted that rules framed under s. 7 of the WT Act were mandatory and retrospective. It was submitted that though the aforesaid decision of the Supreme Court was in the context of r. 1D of the WT Rules, yet the ratio would apply to the instant case also with the same force and vigour.;
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