Ajit K.Sengupta, J. - (1.) In this reference under Section 27(1) of the Wealth-tax Act, 1957, for the assessment year 1977-78, the following question of law has been referred to this court : "Whether, on the facts and in the circumstances of the case, the value of the land owned by the assessee was rightly valued by the Tribunal at Rs. 1,68,600 instead of Rs. 1,93,600 estimated by the Wealth-tax Officer and Rs. 77,000 estimated by the Appellate Assistant Commissioner ?"
(2.) Shortly stated, the facts are that the assessee filed before the Wealth-tax Officer two valuation reports in respect of the plot of land being 37F, Paikpara Road, Calcutta. The first report dated November 30, 1972, estimated the then market value of the plot at Rs. 77,000. The second report dated July 8, 1977, showed the value at Rs. 11,650, the decline being attributed to the depressing effect of the passage of the Urban Land (Ceiling and Regulation) Act, 1976. The Wealth-tax Officer did not accept the contention of the assessee as regards the valuation of the land on the ground that the value of Rs. 77,000 in 1972 could not go down to Rs. 11,500 after five years. He also observed that the land under consideration had not been notified by the urban land ceiling authority for taking over. He gathered from enquiry made by the Departmental Inspector that land was sold in the adjoining area at Rs. 12,000 per kottah on August 13, 1972, and two other plots were sold at the rates of Rs. 8,000 and Rs. 9,540 per kottah. The average rate of sale, according to the said plot, came to Rs. 9,846 per kottah. However, considering the fact that the land under consideration was quite big in area, he took the value of the land under consideration at Rs. 8,000 per kottah and thus arrived at the value of Rs. 1,93,600. He made the assessment on the basis of the above value determined by him.
(3.) The assessee appealed to the Appellate Assistant Commissioner and contested the value taken by the Wealth-tax Officer. It was urged that the said land was covered by the Urban Land (Ceiling and Regulation) Act, 1976, and the excess land was liable to be acquired by the Government at a price of Rs. 10 per square metre. The Appellate Assistant Commissioner observed that the land under consideration was hit by the aforesaid Act and that the bulk of the land was in excess of the ceiling and so was liable to be acquired by the Government. Considering the value that could be obtained under the said Act, he considered the valuation taken by the Wealth-tax Officer had no justification. In this view of the matter, he directed that the valuation of the land under consideration should be taken at Rs. 77,000 only. The assessee got relief of Rs. 1,11,600.;