Amrit Lal Bahri, J. - (1.) THIS case relates to the assessment years 1973 -74 and 1974 -75. On four reference applications filed before the Income Tax Appellate Tribunal, Amritsar, by the Revenue as well as by the assessee, the following questions of law were referred to this court for adjudication : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that rule 1BB of the Wealth -tax Rules, would operate retrospectively so that the valuation of the assessees building, as on March 31, 1973, and March 31, 1974, should be made in accordance with the said rule ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the Wealth -tax Officer should determine afresh the desirability of referring the valuation of the asset to the Valuation Officer under section 16A of the Wealth -tax Act, 1957, keeping in view rule 1BB of the Wealth -tax Rules ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the Valuation Officer cannot ignore rule 1BB for the valuation of the residential property ? (4) Whether, on the facts and in the circumstances of the case, the Tribunal is right in law din holding that the benefit of rule 1BB of the Wealth -tax Rules can be availed of even by an assessee, whose case falls under section 7(4) of the Wealth -tax Act -
(2.) FOR the year 1973 -74, the Wealth -tax Officer, Amritsar, passed the assessment order on March 26, 1979. On the same date, such like order was passed for the year 1974 -75. Property No. 13, the Mall, Amritsar, belonging to the assessee was valued at Rs. 3,76,000, as determined by the valuation cell. On appeal, the Appellate Assistant Commissioner, vide order dated November 23, 1979, reduced the value to Rs. 3,60,000. Ultimately, the matter came up before the Income Tax Appellate Tribunal, who, vide his order dated June 5, 1981, set aside the orders of the authorities below and directed the Wealth -tax Officer to consider the question of valuation of this residential property in the light of the decision of the Special Bench of the Tribunal in the case of Shri Biju Patnaik (W.T.A. Nos. 614 to 624/(ASR) 79, [1981] Taxation 61 (6)). The Wealth -tax Officer was directed to ascertain the value of the residential property on the basis of rule 1BB and then determine whether as reference to the Valuation Officer was called for under section 16A. It was further observed that the Valuation Officer also cannot ignore rule 1BB for the valuation of the residential property. After ascertaining such value, the assessee should be given an option which might be available to him under section 7(4) of the Wealth tax Act.
(3.) IN spite of service, nobody on behalf of the respondent has put in appearance. On fixation of the case, a registered notice was also sent and the assessee declined to accept the same. We have heard counsel for the Revenue. The questions referred are overlapping with respect to the applicability of rule 1BB of the Wealth -tax Rules, as inducted in 1979 to the assessments in dispute which relate to the years 1973 -74 and 1974 -75. This rule was framed, vide Notification No. S.O. 169(E), dated March 30, 1979 (see : [1979]117ITR51(Guj) ) (with effect from April 1, 1979). Rule 1BB was omitted by the Wealth -tax (Second Amendment) Rules, 1989, Notification No. S.O. 348 (E), dated May 9, 1989 (see, [1989] 177 ITR 146) with effect from April 1, 1989.;