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Section 27(3) of the Wealth-tax Act, 1957 - Reference - Question of law - Assessment year 1980-81 - Tribunal upheld valuation of unquoted equity shares on yield method as against break-up value method adopted by WTO - Tribunal rejected reference application of revenue - Whether in view of fact that difference in tax effect between two methods of valuation was very small, no useful purpose would be served by calling for a reference and, hence, Tribunal's order deserved to be upheld - Held, yes FACTS The assessee had certain unquoted shares of company. The ITO valued the shares by the break-up value method. On appeal, the AAC held that the profit-earning method would be the appropriate method and allowed the assessee's claim. On further appeal by the revenue, the Tribunal upheld the order of the AAC. The reference application of the department was also rejected. The difference in tax, even if the break-up value method was resorted to, was very small. On an application under section 27(3): HELD In the instant case, the amount of tax involved was rather nominal, i.e., Rs. 858 only; even if the calculation of the tax was made by the method suggested by the revenue it would make a difference of Rs. 700 only. The assessment year in question was a decade old. Even if the reference was made and the same was decided in favour of the revenue, it would hardly serve any purpose for the department. If the expenses involved of both the sides and the time of all the authorities were taken into account, the whole exercise would be more or less futile since the amount involved was negligible. It would not be worthwhile to interfere with the order of the Tribunal. Therefore, no question was referable from the Tribunal's order. CASES REFERRED TO Mrs. Grace Collis v. CWT [1988] 172 ITR 597 (Ker.) CWT v. Sripat Singhania [1978] 112 ITR 363 (All.), Sharbati Devi Jhalani v.CWT [1986] 159 ITR 549 (Delhi), CGT v. Smt. Kusumben D. Mahadevia [1980] 122 ITR 38 (SC) and CGT v. Executors & Trustees of the Estate of Late Shri Ambalal Sarabhai [1988] 170 ITR 144/36 Taxman 162A(SC). V.K. Singhal for the Applicant N.M. Ranka for the Respondent. JUDGMENT Israni, J.-This reference application…

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