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COMMISSIONER OF WEALTH TAX Vs CHHAGAN LAL GUPTA (ALSO CWT v. VIDHYA SAGAR GUPTA, CWT v. BHANWAR LAL GUPTA).

Case No: DB WT Ref. No. 7 of 1996, 15th January, 1996, (DB WT Ref. No. 5 of 1996) , (DB WT Ref. No. 9 of 1996) respectively.

Date of Decision: Jan. 15, 1996

Acts Referred: Wealth Tax Act, 1957 — Section 25(1), 27(3)

Citation: (1996) 134 CTR 422

Hon'ble Judges: B. R. Arora, J

Bench: Division Bench

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Judgement

B. R. ARORA, J. :

The Revenue, by these four applications made under s. 27(3) of the WT Act, has prayed that the Tribunal, Jaipur Bench, Jaipur, may be directed

to state the case and refer the following identical question of law in all the four cases for the opinion of the High Court :

Whether on the facts and in the circumstances of the case, the Tribunal was legally justified in remanding the case to WTO for valuation of the

property as per Schedule III whereas such Schedule is effective from 1st April, 1989 so applicable for asst. yr. 1989-90 and onwards ?

2. The assessee Chhagan Lal Gupta, Bhanwar Lal Gupta, Vidhyasagar Gupta and Sunder Lal Gupta are the co-owners of the factory called

Jindal General Manufacturing Company"" situated at C-92, Wazirpur Industrial Area, Delhi. All the co-owners filed their separate returns under

the WT Act for various years. The WTO accepted the total value of the suit property at Rs. 36,54,000 in each of the years under consideration on

the basis of the report of the DVO. Dissatisfied with the orders passed by the Assessing Officer (AO) assessing the assessees on a higher value,

the assessee preferred appeals before the CWT(A). The five appeals filed by the assessees were decided by the Dy. CWT(A) by a common

order and the appeals filed by the assessees were partly allowed. The assessees aggrieved with the order passed by the Dy. CWT(A), filed the

appeals before the Tribunal, Jaipur Bench, Jaipur and the Tribunal, by its order dt. 12th Sept., 1994 allowed the appeals filed by the assessees and

remanded the case to the assessing authority to reassess the assessees and determine the value of the property as per the amended rules contained

in Schedule III of the Act. The Revenue thereafter moved applications under s. 27(1) of the Act to refer the above question of law in all the cases

for the opinion of the High Court. The Tribunal, by its order dt. 5th July, 1995 dismissed all the applications under s. 27(1) of the Act filed by the

Revenue by a common order and refused to refer the question mentioned in the applications because the question of law, which is sought to be

referred by the Revenue already stands decided by the judgment of the Supreme Court and as such no referable question of law arises fit for

reference to the High Court.

3. It is contended by the learned counsel for the Revenue that when the assessment had already been completed before 1st April, 1989, the

valuation of the property, as per Schedule III of the Act, could not have been made under Schedule III of the Act. The Schedule III of the Act

came into force w.e.f. 1st April, 1989 and, therefore, the Schedule III can be applied for the valuation purposes only with respect to the

proceedings which were pending before the assessing authority on or after 1st April, 1989 and not on the proceedings which have been completed

before this date.

4. We have considered the submissions made by the learned counsel for the Revenue.

5. The appeals filed by the assessees were allowed by the Tribunal and the cases were remanded to the assessing authority and the assessees were

permitted to raise the additional grounds. The Tribunal, while remanding the cases, directed the WTO to value the present share of the assessees in

the joint familys property as per the amended rules contained in Schedule III of the Act after giving proper opportunity of hearing to them.

Schedule III of the Act, which relates to the determination of the value of the property, is a procedural law and applies to the pending proceedings.

After the order of remand was passed by the Tribunal, the assessment proceedings are pending before the assessing authority.

6. It may not be out of place to mention here that in the cases of the assessees who are the co-owners for the assessment of the earlier years with

respect to the same property, the value of the property was assessed at Rs. 16,19,000 or around by the WTO and the CWT(A), exercising the

powers under s. 25(2) of the Act, set aside the order of the assessment and remanded the case to the AO to reassess the assessees taking into

consideration the report of the DVO. The matter with respect to these assessments is also pending before the AO which has to be decided under

the amended law and, therefore, it cannot be said that the assessment proceedings have been completed. After the introduction of Schedule III

(Part A) of the Act, the valuation has to be made on the basis of the amended law.

7. After the remand, the matters are pending before the assessing authority for adjudication and the valuation of the property has to be made in

accordance with Schedule III of the Act. The amendment with regard to the procedure or of evidence are to be construed as retrospective and

applies to all the pending matters on the dates when the amendment was made unless there is a specific indication that such was not the intention of

the legislature. The controversy in the present case stands concluded by the judgment of the Supreme Court in : Commissioner of Wealth Tax,

Meerut Vs. Sharvan Kumar Swarup and Sons, . It has been held by the apex Court in this case that ""r. 1BB partakes of the character of a rule of

evidence. It deems the market value to be the one arrived at on the application of a particular method of valuation which is also one of the

recognised and accepted methods. The rule is procedural and not substantive and is applicable to all proceedings pending on 1st April, 1989,

when the rule came into force. The procedural law, generally speaking, is applicable to pending cases. No suitor can be said to have a vested right

in procedure.

8. Since the controversy stands concluded by the aforesaid judgment of the Supreme Court, no referable question of law arises in the matter and

the learned Members of the Tribunal were justified in refusing to state the case and to refer the question for adjudication to this Court. The

applications under s. 27(3) of the WT Act, therefore, deserve to be dismissed.

9. In the result, we do not find any merit in these applications and the same are hereby dismissed.