Commissioner of Wealth Tax vs Sohan Lal Sita Ram

Kirpal, J.—The aforesaid petitions u/s 27(3) of the Wealth tax Act, 1957, pertain to the assessment years 1974-75 to 1977-78.

The respondent-assessed has a share in a residential house at Kanpur and the question involved is regarding the valuation of that house. It appears that, in respect of the assessment year 1971-72, the Income Tax. Appellate Tribunal had determined the value of the property at Rs. 2,50,000, vide its order date January 29, 1981. This order has been followed by the Tribunal for the subsequent years including the years with which we are concerned in these petitions.

In respect of the year 1971-72, a comedy of errors seems to have occurred. The Tribunal had decided that appeal and against that an application u/s 27(1) was filed. That application was dismissed by the Tribunal, six years ago, that is to say in 1983. According to learned counsel for the petitioner, a copy of that order was sent by the Tribunal to the Commissioner of Wealth-tax at Kanpur but as, in the mean time, the jurisdiction of the Commissioner of Wealth-tax. Kanpur, had been changed and the cases had been transferred to the Commissioner of Wealth-tax, Delhi the Kanpur authorities, after receiving the order, returned the same to the Tribunal. According to learned counsel, till today, a copy of that order has not been received by the Commissioner of Wealth-tax at Delhi. Therefore the question of the Commissioner filing an application u/s 27(3) in respect of the assessment year 1972-72 does not arise.

Be that as may, it cannot be denied that, according to section 7(4) the value of a residential house has been frozen as being the value as on April 1, 1971. Therefore, whatever is the which is determined as on that day, necessarily, to be value for the subsequent years. At the present moment, no proceedings are pending in respect of the assessment year 1971-72. There is an off chance that, in respect of the year 1971-72 the value may be revised, God knows after how many decades. As at the present moment, in our opinion, the value in respect of the assessment year 1971-72 stands concluded with the order of the Tribunal, we do not feel is appropriate to direct the Tribunal to refer any question of law because the answer to the same is self-evident. We, Therefore, dispose of these petitions by consigning them to the record and give liberty to the petitioner to apply for revival if and when the value of the house for the year 1971-72 is revised.

This is without prejudice to any contentions which may be raised by the assessed at that time.