Judgment

S.C. AGRAWAL, J.

(1) THESE appeals, by certificate granted by the High court under S. 29(1 of the Wealth Tax Act, 1957, (hereinafter referred to as the Act) are directed against the judgment of the High court of Allahabad dated 2/02/1982 in Wealth Tax Reference No. 179 of 1978.

(2) THE appellant, F.S. Gandhi (hereinafter referred to as the assessee), owns properties situate at Mahatma Gandhi Marg and Sardar Patel Marg in Civil Lines area at Allahabad. The lands on which these buildings stand were leased out to the assessee by the government of Uttar Pradesh. The leases in respect of these properties, except the property situate at 30-A, Mahatma Gandhi Marg, expired in 1958 and the lease in respect of the property situate at 30-A Mahatma Gandhi Marg expired in 1963. The government of Uttar Pradesh issued notices to the assessee to hand over vacant possession of the leasehold lands. The properties are let out to the tenants and the assessee was receiving rental income from the same. For the assessment years 1971-72, 1972-73, 1973-74 and 1974- 75 the assessee submitted the wealth tax returns wherein he valued the properties at ten times of the annual rental income. The Wealth Tax Officer passed assessment orders wherein he valued the properties at fifteen times of the annual rental income. On appeal, the Appellate Assistant Commissioner of Wealth Tax, valued the said properties at twelve and a half times of the annual rental income. On further appeal, the Income Tax Appellate tribunal (hereinafter referred to as the tribunal) valued the properties at ten times of the annual rental income.

(3) AT the request of the assessee the tribunal referred the following questions of law to the High court:

(1 "Whether on the facts and circumstances of the case, the tribunal was right in holding that properties in respect of which leases had expired in 1958 and 1963 and notices had been received to hand over the possession were assets within the meaning of S. 2(e)(v) of the Wealth Tax Act and its value was liable to be included in the net wealth of the assessee?

(2 Whether on correct interpretation of S. 2(e)(v) and relevant provisions of Transfer of Property Act, the tribunal was right in holding that the interest of the appellant in respect of properties in dispute was for a period over six years?

(3 Whether there was any material before the tribunal to hold that on the relevant valuation date the property situated at 30A, Mahatma Gandhi Marg was worth ten times of its annual rental income while in previous years the value of the said property was shown and accepted at Rs. 1,19,000.00?

(4 Whether the tribunal was right in holding that the property at 30-A, Mahatma Gandhi Marg, was to be valued on the basis of its annual income along with other properties notwithstanding the property in question was commercial property while other properties were residential houses and whether the multiple upheld by the tribunal is justified in law and on facts?

(5 Whether on the facts and circumstances of the case the multiple of ten times of rental income in respect of property at 30-A, Mahatma Gandhi Marg, is not excessive and wholly unjustified?"

(4) BY order dated 2/02/1982, the High court answered the said questions in the affirmative, i.e., in favour of the department and against the assessee. Thereafter the assessee moved an application under S. 29(1 of the Act for grant of certificate of fitness for appeal to this court. By order dated 8/07/1982, the High court granted certificate of fitness on the view that the following question is a question of law which is of general importance and as such this was a fit case in which an appeal could be filed before this court:

"WHETHER on the facts and circumstances of the case the tribunal was right in holding that the properties in respect to which leases had expired in 1958 and 1963 and notices had been received to hand over the possessio