Law:

Section:

Section 27(3), read with section 7(1), of the wealth-tax act, 1957 and rule 1D of the wealth-tax rules, 1957-Reference-Question of law-Assessee acquired on 29-3-1975 certain shares which were part of fresh issue of capital of company concerned-For assessment year 1975-76 (valuation date being 31-3-1975), WTO accepted assessee's valuation of said shares at face value which was Rs. 100 per share-commissioner held that break-up value worked out at Rs. 245 per share shall be considered as per rule 1D-tribunal held rule id was applicable but determined value at Rs. 129 per share by applying balance sheet of company as at 31-12-1975 on the ground that said shares did not exist in balance sheet as at 31-12-1974-Whether any question of law regarding applicability of balance sheet as, at 31-12-1974 arose from tribunal's order-Held, on facts, no Facts The assessee acquired 1,000 shares of a private limited company of face value of Rs. 100 each on 29-3-1975, i.e., only two days before the valuation date, for the purpose of wealth-tax. These shares formed part of a fresh issue of capital by the company. The WTO accepted the assessee's claim for the value of these shares being Rs. 1,00,000. The Commissioner,however, held the WTO's order as erroneous and prejudicial to the interest of revenue, and directed the WTO to make a fresh assessment on the basis that on an application of rule ID of the Wealth-tax Rules, the break-up value worked out to be Rs. 245 per share. On appeal, the Tribunal set aside the Commissioner's order, and held that though the WTO's order was erroneous, it was not prejudicial to the revenue's interest. The Tribunal applied the balance sheet of 31-12-1975 instead of 31-12-1974 and determined the value of the shares at Rs. 1,29,690. The Tribunal also rejected the revenue's application for reference on the question whether it had erred in applying the balance sheet of 31-12-1975 when that for 31-12-1974 was available, thereby counter-vening the provisions of Explanation 1 to rule ID. On application under section 27(3): Held Rule ID contemplates by Explanation 1 that a reference should be made to the balance sheet as drawn up on the valuation date. The rule…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492