Law:

Section:

Section 7 of the Wealth-tax Act, 1957 - Valuation of assets - Assessment year 1957-58 - Assessee-company disclosed net wealth by adopting written down value of assets as per income-tax assessment though balance-sheet showed higher figure - WTO resorted to 'global valuation' under section 7(2) on basis of balance-sheet of company as accounts were audited and it was certified that balance-sheet showed true and correct state of affairs of company - Tribunal being satisfied that valuation shown in balance sheet was inflated and also rejecting valuation as per income-tax assessment, accepted valuation made for State Government by expert valuers for purpose of granting State aid - Whether Tribunal's satisfaction that valuation shown in balance sheet was inflated, was a finding of fact based upon proper materials - Held, yes - Whether in absence of materials produced by assessee to support its claim, that written down value represented correct value and should be accepted, Tribunal was justified in rejecting assessee's claim - Held, yes - Whether valuation of assets by State Government as a creditor represented correct valuation of assets and was a reliable in arriving at market value of assets of assessee - Held, yes - Whether, therefore, Tribunal was justified in valuing assets as determind by State Government - Held, yes FACTS For the assessment year 1957-58, the assessee-company, in its return disclosing net wealth, adopted the value of the assets at the written down value as per the income-tax assessment, though the balance sheet figures were much higher. The WTO resorted to 'global valuation' of the assets as permitted under section 7(2) on the basis of the balance of the company, since the accounts were audited and it was certified that the balance sheet showed the true and correct state of affairs. It was explained that the U.P. Government got these assets valued for the purpose of granting State aid and arrived at a total valuation much less than that shown in the balance sheet. The WTO was of the view though this fact was known to the assessee, no revision of the valuation was done in the accounts which showed that the assessee considered the figures of the…

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