COMMISSIONER OF WEALTH TAX VS R.M. VALLIAPPA CHETTIAR
2001 P T D 1926
[246 I T R 801]
[Madras High Court (India)]
Before R. Jayasimha Babu and Mrs. A. Subbulakshmy, JJ
COMMISSIONER OF WEALTH TAX
Versus
V.R.M. VALLIAPPA CHETTIAR
Tax Cases Nos.192 to 195 of 1994 (References Nos.103 to 106 of 1994), decided on 30/11/1998.
Wealth tax‑‑‑
‑‑‑‑ Valuation of assets‑‑‑Valuation made for earlier valuation date could not ipso facto be applied for valuation for later years.
The valuation for wealth tax purposes is required to be made as on the valuation date and a report given with regard to the value made for an earlier valuation date, could not ipso facto apply for determining the valuation for later years. .
C.V. Rajan for the Commissioner.
Nemo for the Assessee.
JUDGMENT
R. JAYASIMHA BABU, J.‑‑‑The Tribunal while approving the reasoning adopted by the. Commissioner in his order by which the Commissioner had set aside the wealth tax assessment and directed the Wealth Tax Officer to redo the assessment after going into the entire gamut of the valuation of the properties concerned, by what was termed a slight modification, virtually set at naught the Commissioner's order. The directions, so given by the Tribunal, were not called for. Now the Revenue is before us questioning the directions given by the Tribunal. The question referred to us is as follows:
"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in modifying the direction of the Commissioner of Wealth Tax given under section 25(2) and directing the Assessing Officer to finalise the assessments for the assessment years 1983‑84 to 1986‑87 on the basis of the value finally fixed for the properties concerned in the assessment years 1982‑83?"
The mere fact that the valuation report was received subsequent to the date of the assessment would not ipso facto make the valuation applicable to all the years up to the date of the assessment as the valuation made was with reference to a specific anterior date, namely, April 13, 1982. The assessment years in question are later years 1983‑84 to 1986‑87. The Commissioner has rightly directed the Wealth Tax Officer to redo the assessment for those years without binding him to adopt the report of the Valuation Officer given for the earlier year.
The valuation is required to be made as on the valuation date and the report given with regard to the value made for an earlier valuation date, cannot in these circumstances ipso facto apply for determining the valuation for later years. The question referred to us is, therefore, answered in favour of the Revenue and against the assessee.
M.B.A./520/FC Reference answered