- (1.) The Income-tax Appellate Tribunal, New Delhi, has referred the following two questions under Section 27(1) of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act") for the opinion to this court : "1. Whether the Income-tax Appellate Tribunal is legally correct in holding that the assessee was entitled to exemption under Section 5(1)(iv) of the Wealth-tax Act in respect of his share in the value of the immovable properties, which belonged to the firm of which the assessee is a partner ? 2. Whether the Income-tax Appellate Tribunal is legally correct in holding that reversionary value of land cannot be included while valuing the immovable property by capitalizing net annual value ?"
(2.) Briefly stated the facts giving rise to the present references are as under :
(3.) The respondent in W. T. R. No. 119 of 1985 is Dalpat Singh, whereas in W. T. R. No. 120 of 1985 the respondent is Ajit Singh and in W. T. R. No. 137 of 1985 the respondent is Abhay Singh. All of them are partners in M/s. Jaswant Picture Palace, Agra, which owns a cinema hall known as Jaswant Cinema and Jaswant Market in King Ki Mandi, Agra. The present references relate to the assessment years 1976-77 to 1978-79. For valuing the properties the Wealth-tax Officer had referred the question of valuation to the Valuation Officer. The Valuation Officer initially valued the assets including the market at Rs. 21,16,000 as on March 31, 1976. After hearing the assessee, the Valuation Officer valued the property at Rs. 19,59,000. It was on this basis that the interest of the assessee in the firm was worked out. The assessee had also claimed that the value of this property was exempt under Section 5(1)(iv) of the Act. The Wealth-tax Officer refused the exemption on the ground that the interest of the assessee in the property was a movable asset. Regarding the Ajit Market, the Wealth-tax Officer had held that there were several shops and the assessee can get exemption in respect of one shop only.;