In Brief
This case concerns the valuation of a cinema building (Alpana Cinema) in New Delhi for wealth tax assessment. The assessees (partners in the firm owning the cinema) argued that income capitalisation was the proper valuation method, while the revenue authorities used the land-and-building method. The Supreme Court held that Section 7(2)(a) of the Wealth Tax Act is discretionary, not mandatory. The Wealth Tax Officer's decision to refer the property to a departmental valuer and adopt the land-and-building method was valid. The Court rejected the assessee's reliance on the principle that when two reasonable statutory constructions exist, the one favoring the assessee must be chosen—this principle applies to statutory interpretation, not to choosing between valuation methods where the statute is clear. All appeals were dismissed.
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