COMMISSIONER OF WEALTH TAX Vs. JINDAL S

JUDGEMENT

(1.) THE Revenue sought and obtained reference of the following question, under the provisions of the Wealth-tax Act, 1957 ("the Act" for short) :

(2.) THE first question is covered by the decision of this court in CWT v. N. Krishnan [1968] 162 ITR 309. Following the said decision, the question is answered in the negative and against the assessee.

(3.) THEREFORE, valuation of an assets, including that of a share is to be on the basis of its market price on the valuation date for which purpose a market if, necessary, is imagined to exist. Section 7, before the framing of rule 1D, came up before the Supreme Court for interpretation, with reference to the valuation of shares in CWT v. Mahandeo Jalan . After considering the difference between a public limited company and a private limited company and the non-availability of a tree market for the shares of private companies, the Supreme Court proceeded to examine the approach of a buyer of shares and held (at p. 629) :