Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Wealth Tax Act. 195 7 - ss. 7 and 16-A - Valuation of asset - Method of valuation - Assessees-appellants were partners in a firm - One of the assets of the partnership firm was a Cinema building |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Wealth Tax Act. 195 7 - ss. 7 and 16-A - Valuation of asset - Method of valuation - Assesses-appellants were partners in a firm A B - One of the assets of the partnership firm was a Cinema building - C Assessing officer made a reference u/s. J 6A to the Department Valuation Officer for valuation of Cinema .building - On the basis thereof. Assessing officer assessed the Cinema building adopting the land and building method - Appellate Authority affirmed the assessment made by Assessing Officer - Income Tax Appellate Tribunal (!TAT) accepted the case of the assesses that the proper · D basis for valuing the Cinema building .was income capitalisation meth~d - Revenue filed reference application - High Court on reference answered the questions against .the assessees holding that Wealth Tax Officer was justified in adopting the land and building method - Plea of assessees be.fore Supreme Court that. 7(2)(a) is a E non obstacle clause prescribing the inco_me capitalization method for assessing value of the assets of a running business and thus is to be applied in all cases where assessee is caninga business - Held: Wealth Tax Officer is not obliged to mandatory/y adopt the method provided in s. 7(2)(a) ·in all cases where assesses is carrying 011 a business - s. 7(2}(a) is an enabling provision and resort to it is F discretionary - Such enabling power cannot be held as obligation · or shackles on the right of Assessing Officer to adopt an appropriate method - No error found in the order of Assessing Officer in adopting the land and building method by making a reference to Departmental Valuer to value the property on the said method - G -High Court did not err in interfering with the order of !TAT. |
Judge | Hon'ble Mr. Justice Ashok Bhushan |
Neutral Citation | 2017 INSC 1041 |
Petitioner | Bimal Kishore Paliwal & Ors |
Respondent | Commissioner Of Wealth Tax |
SCR | [2017] 14 S.C.R. 597 |
Judgement Date | 2017-10-13 |
Case Number | 3836 |
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