- (1.) THE Tribunal, Jaipur Bench, Jaipur has referred the following question in R.A. Nos. 258 to 263/Jp/1988 arising out of WTA Nos. 32 to 37/Jp/1988 for the assessment years 1975 -76 to 1980 -81: 1 Whether on the facts and in the circumstances of the case the Tribunal was right in holding that rule IBB of Wealth Tax Rules was applicable to work out the value of the residential property known as Samod House which was used by the assessee for self -occupation ?
(2.) BRIEF facts relevant to the case are that a property known as "Samod House" was used as residential house by the assessee and the question of its value came up for consideration before the Wealth Tax Officer where such determination was made as per the provisions of Section 7(4) of the Wealth Tax Act, 1957 (for short the Act). The order of Wealth Tax Officer was then challenged before the Appellate Assistant Commissioner by the assessee. While hearing the matter by the Appellate Assistant Commissioner a question came up for consideration as to whether the valuation of property is to be determined by invoking rule IBB of the Wealth Tax Rules, 1957 (for short the Rules) as r. IBB of the Rules came by way of amendment: in the Rules and accordingly the said rule was inserted with effect from 1 -4 -1979. Taking the aforesaid rule to be procedural in nature, it was treated as retrospective. Rule IBB of the Rules provides for method of determination of value of the house and accordingly the Appellate Assistant Commissioner gave a direction to the Wealth Tax Officer to determine the value of the residential house by applying rule IBB of the Rules. The order of the Appellate Assistant Commissioner was challenged before the Tribunal by the revenue and the Tribunal maintained the order of the Appellate Assistant Commissioner. Accordingly, reference was sought as to whether the Tribunal was right in holding that rule IBB of the Rules was applicable to work out the value of the residential house. It is a case where assessment years related to 1975 -76 to 1980 -81. We have heard learned Counsel for the revenue and perused the record carefully.
(3.) THE issue for our answer relates to application of rule IBB of the Rules for the purpose of determination of value of the residential property known as "Samod House". Before referring to rule IBB, it is necessary to refer the main provisions of Sections 7(1) and 7(4) of the Act for ready reference which are quoted hereunder: 7(1) Subject to any rules made in this behalf the value of any asset, other than cash, for the purpose of this Act, shall be estimated to be the price which in the opinion of the Wealth Tax Officer it would fetch if sold in the open market on the valuation date. 7(4) Notwithstanding anything contained in Sub -section (1), the value of a house belonging to the assessee and exclusively used by him for residential purpose throughout the period of twelve months immediately preceding the valuation date may, at the opinion of the assessee, be taken to be the price which in the opinion of the Wealth Tax Officer, it would fetch if sold in the open market on the valuation date next following date on which he became the owner of the house, or on the valuation date relevant to the assessment year commencing on the 1 -4 -1971, whichever valuation date is later: Provided that where more than one house belonging to the assessee is exclusively used by him for residential purposes, the provisions of this Sub -section shall apply only in respect of one of such houses which the assessee may at his opinion, specify in this behalf in the return of net wealth. Explanation : For the purpose of this Sub -section - - (i) where the house has been constructed by the assessee, he shall be deemed to have become the owner thereof on the date on which the construction of such house was completed; (ii) house includes a part of a house, being an independent residential unit.;