Legal Case Summary

Case Details
Case ID 21562432-9b9a-456f-85a8-981b7dce570a
Body View case body.
Case Number WT REFERENCE NO. 313 OF 1982
Decision Date May 09, 2003
Hearing Date
Decision The Allahabad High Court ruled on the applicability of rule 1BB of the Wealth-tax Rules, 1957, confirming that it has not been made effective from 1-4-1979 but was to apply in pending assessments for orders prior to the assessment year 1979-80. The Supreme Court's decision in CWT v. Sharvan Kumar Swarup & Sons [1994] 210 ITR 886 was referenced, stating that rule 1BB is procedural and applicable to all proceedings pending as of 1st April, 1979. Consequently, the reference was answered in the affirmative against the department and in favor of the assessee.
Summary This case involves the interpretation of section 7 of the Wealth-tax Act, 1957, concerning the valuation of immovable property. The Allahabad High Court addressed the question of whether rule 1BB was applicable to pending assessments prior to the assessment year 1979-80. The court reaffirmed that rule 1BB was procedural and should apply to all proceedings pending when the rules came into force. This decision underlines the significance of procedural rules in tax assessments and their retrospective applicability in specific contexts. The ruling is pivotal for tax practitioners and stakeholders in understanding how valuation rules are applied in wealth tax assessments, especially concerning immovable properties. The case is likely to influence future tax litigation and interpretations of the Wealth-tax Act. It emphasizes the importance of staying updated with procedural rules and their implications on ongoing assessments.
Court Allahabad High Court
Entities Involved Not available
Judges Dr. B.S. Chauhan, Ghanshyam Dass
Lawyers Not available
Petitioners Commissioner of Wealth Tax
Respondents Kapoor Chand
Citations 2004 SLD 2245, (2004) 266 ITR 496
Other Citations CWT v. Sharvan Kumar Swarup & Sons [1994] 210 ITR 886
Laws Involved Wealth-tax Act, 1957
Sections 7