ASHOK BHAN,J. - (1.) THIS judgment shall dispose of the Wealth-tax References Nos. 49 to 51 of 1982, as they arise from the same facts. The Income-tax Appellate Tribunal, Amritsar (hereinafter referred to as "the Tribunal"), had also dealt with them together and passed a common order.
(2.) AT the instance of the assessees, the following question of law has been referred to the High Court for its opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the reversionary value of land had been correctly added to the valuation of let out property arrived at by way of rent capitalisation method ?" The three assessees owned property, i. e. , Central Mills, Jullundur, in which each of them had a 1/3rd share. The assessees determined the total value of the property at Rs. 5,94,296. Claiming a 1/3rd share in the property, each one of them returned the value of the 1/3rd share at Rs. 1,98,099 in their respective wealth-tax returns. Since the value of the property appeared to the Wealth-tax Officer to be on the lower side, he referred the valuation of the property to the Valuation Officer. The total property comprised 788 marks, out of which on 578 marlas buildings were constructed over a period of a number of years by the assessees and their predecessors. 171 marlas of land was found to be under roads, lanes and paths, etc. All the buildings had been let out to various tenants. One of the buildings had been let out to a firm, of which the assessees were partners, at a monthly rent of Rs. 100.
(3.) ACCORDING to the valuation report, the total area of the property is 788 marlas, which could be divided into two sectors, 578 marlas of land over which buildings were constructed by the assessees from time to time, which is now a commercial complex. The commercial complex is scattered over 578 marlas, which has one entrance from the railway road. The area under the roads, lanes and paths, etc. , is 171 marlas. The position regarding land under roads and covered with structures, as given in the valuation report, is as under : "total area of land 788 marlas (a) Commercial complex : (i) Area under buildings constructed prior to the year 1935-rented (ii) Area under the occupation of the assessee (iii) Area under buildings constructed from 1963 to 1957-rented (iv) Area under buildings constructed from 1970 to 1973 (v) Area under ground rent (vi) Under roads, lanes and paths, etc. (b)273 marlas 68 marlas 24 marlas 35. 5 marlas 7. 5 marlas 407. 00 M. 171. 00 M. 578. 03 = M. 5 (i) Area rented to Kartar Bus 165 M. Service (ii) Approach to Kartar Bus 45 M. Service (thoroughfare)210 M. =210 Total : 788 ;