Law: Wealth Tax Act, 1957

Section: 7(1),(2) (a)

Wealth tax-Valuation-Dealer in shares- Regular books of account maintained for share business-Valuation of shares indivi dually as per market value-Whether justified-Global valuation Whether obligatory-Reference-Joint reference of two assessees- Whether justified-Wealth Tax Act, 1957, S. 7(1),(2) (a). The practice of referring cases of two different assessees by a joint reference is not justified by the rules of practice or procedure laid down in that connection. Though it is open to the Tribunal to dispose of two appeals by a common judgment, it is better to make two separate references, each reference dealing with the case of each individual assessee. Though section 7(2)(a)' of the Wealth Tax Act, 1957, gives an option to the Wealth Tax Officer to adopt the valuation shown in the, balance-sheet of the business of the assessee making such adjustment in that valuation as the circumstances of the case may require, he is not bound to adopt the valuation laid down under section 7(2)(a) in case he decides to go in for the valuation of each asset in that particular business under section 7(1). The officer has the option to proceed under either of the two subsections. [Case-law referred]. STATEMENT OF CASE All the three reference applications are disposed of by a common statement, as the question of reference is common to all. 2. The assessees require the Tribunal to refer to the High Court a question of law which is said to arise out of the Tribunal's orders in W.T.A. No. 877 of 1963-64, dated the 13th July 1965, and W.T.As. Nos. 1159 and 1160 of 1963-64, dated the 19th July 1965. Inasmuch as, in our opinion, a question of law does arise out of the aforesaid orders of the Tribunal, we hereby draw up an agreed statement of case and refer it to the High Court of Judi cature for the State of Gujarat at Ahmedabad under section 27(1) of the Wealth Tax Act, 1957. 3. The assessees are dealers in shares. The material valuation date for the assessment year 1962-63, in the case of Shri Kikabhai Bhagubhai, is 8th November 1961. The material valuation dates for the assessment years 1961-62 and 1962-63, in the case of Shri Ramprasad Kantilal Bhagat are 20th October 1960,…