COMMISSIONER OF WEALTH TAX Vs. BRIJ RAJ PUNJ

JUDGEMENT

(1.) THIS application under S. 27(3) of the WT Act, 1957, seeks a reference on the following question of law :

(2.) THIS question is the only question raised in this application, but there are a, number of other applications where this question is raised along with some other questions, the Tribunal's main judgment being in this case, the order in this case will also have effect on the other cases concerning this particular question.

(3.) THE facts of the case are that the assessee acquired 1,000 shares of M/s Fedders Lloyd Corporation (Private) Ltd., of a face value of Rs. 100 each on 29th March, 1975. This was part of a fresh issue of share capital. The valuation date for the purpose of wealth -tax was 31st March, 1975, i.e., only two days after the shares were acquired for Rs. 1,00,000. The assessee had claimed that these shares were worth Rs. 1,00,000 as he acquired them only two days before the valuation date. This was accepted by the WTO, but the CWT passed an order under S. 25(2) of the Act holding that the order of the WTO was erroneous and prejudicial to the interest of the Revenue and on an application of r. ID of the W.T. Rules, 1957, the break -up value worked out to be Rs. 245 per share. The WTO was directed to make a fresh assessment.