Law: Wealth Tax Act, 1957

Section: 27(1),2(m)(ii),5

Law: Wealth Tax Rules, 1957

Section: 1D

Wealth tax----- Valuation of assets---Valuation of unquoted shares---Rule 1D has to be applied---Wealth Tax Act, 1957---Indian Wealth Tax Rules, 1957, R. 1D. The provisions of rule 1D of the Wealth Tax Rules, 1957, are mandatory and the valuation of unquoted shares should be made in accordance with that rule. Bharat Hari Singhania v. CWT (1994) 207 ITR 1 (SC) fol. (b) Wealth tax--- ----Net wealth---Deductions---Debt---Debts incurred in relation to properties which are exempt from wealth tax---Not deductible---Indian Wealth Tax Act, 1957, S.2(m)(ii). Section 2(m)(ii) of the Wealth Tax Act, 1957, on a bare reading shows that deduction is not to be permitted where it relates to debts which have been incurred in relation to any property in respect of which wealth tax is not chargeable under the Act: Held, that there was a positive finding recorded by the lower forums that the sum of Rs.1,33,327 had been incurred in relation to certain shares whose values were not includible in the net wealth as per the provisions contained in section. 5. Hence, the debt amounting to Rs.1,33,327 was not deductible from the net wealth. CWT v. Sint. Pushpawati Devi Singhania (1991) 188 ITR 364 (All.) ref. JUDGMENT ARIJIT PASAYAT, C.J.---At the instance of the assessee, the following questions have been referred by the Income-tax Appellate Tribunal, Delhi Bench "E" (in short the "Tribunal"), under section 27(1) of the Wealth Tax Act, 1957 (in short the "Act"), for the opinion of this Court: "(i) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that the provisions of rule 1D of the Wealth Tax Rules, 1957, were mandatory and the valuation of unquoted shares should be made in accordance with that rule and not on yield basis as contended by the assessee? (ii) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that the debt amounting to Rs.1,33,327 was not deductible from net wealth in accordance with the provisions of section 2(m)(ii) of the Wealth Tax Act, 1957?" Brief reference to the factual aspects would suffice. For the assessment year 1977-78, the assessee…

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