Srinivasa Iyengar, J.—Pursuant to an order made by this court under s. 27(2) of the W. T. Act, the Income Tax Appellate Tribunal, Bangalore bench, has referred the following question for the decision of this court:

" (1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in confirming the valuation by the Wealth-tax Officer of the residential house at Rs. 1,70,000 and rejecting the valuation report by the approved valuer ?

(2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the rental method had no validity in determining the value of the residential house ?"

2. The question relates to the assessment to wealth-tax for the assessment year 1971-72, the relevant valuation date being March 31, 1971. The assessee, among other properties, owned a residential house situate at Annaswamy Mudaliar Road, near Ulsoor Tank. She also owned another house in Rathna Vilas Road near Basavanagudi. So far as the Rathna Vilas road property was concerned, the WTO initiated proceedings for reassessment. Such a proceedings was also taken in regard to another property situate at Madras. The assessee had furni