B.R.ARORA,J. - (1.) THE Tribunal, Jaipur Bench, Jaipur for the asst. yr. 1975-76 has referred under S. 27(1) of the WT Act, the following question of law for the opinion of High Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in holding that provisions of S. 7(4) of WT Act, 1957 which were made effective w.e.f. 1st April, 1976, could be applied to asst. yr. 1975-76, treating the said provisions as having resprospective effect, being procedural ?"
(2.) THE assessee, Inderjeet Singh, was assessed for the asst. yr. 1975-76 by the WTO, Jodhpur, under S. 16(3) of the Act. The main item of wealth comprised of property known as 'Zalam Niwas' which was assessed by the WTO at Rs. 32,44,000. The contention of the assessee before the WTO, Jodhpur was that the value of Zalam Niwas property should be taken as Rs. 5,00,000 as adopted in the asst. yr. 1971-72 as per S. 7(4) of the WT Act. This contention of the assessee was not found favour with the assessing authority. Dissatisfied with the order passed by the WTO, Jodhpur, the assessee preferred an appeal before the CWT(A), who relying upon the judgment of the Gujarat High Court rendered in CWT vs. Niranjan Narottam (1988) 72 CTR (Guj) 220 : (1988) 173 ITR 693 (Guj) held that the property in question was used for residential purposes by the family members during the relevant period. The value of the property is required to be assessed both for the asst. yr. 1975-76 and 1976-77 on the value adopted for the asst. yr. 1971-72 at Rs. 5,00,000. The CWT(A), therefore, directed the WTO to adopt this value for both the assessment years at Rs. 5,00,000 as per the provision of S. 7(4) of the Act.
(3.) AGGRIEVED with the order passed by the CWT(A) the Revenue preferred an appeal before the Tribunal, Jaipur Bench, Jaipur. The Tribunal maintained the order passed by the CWT(A) and dismissed the appeal filed by the Revenue. The Revenue filed an application under S. 27(1) of the Act to refer the question of law for the opinion of the High Court and the Tribunal referred the abovenoted question of law for the opinion of High Court.;