COMMISSIONER OF INCOME TAX Vs. DEVINDER KUMAR MODI

JUDGEMENT

(1.) AT the instance of revenue, the Income Tax Appellate Tribunal, New Delhi has referred under section 256(1) of the Income Tax Act, 1961, the following question for our opinion :

(2.) AS is evident from the format of the question, the issue involved is purely legal and, thereforee, we deem it unnecessary to state the facts. Suffice it to note that the controversy involved is as to whether while determining the market value of un -quoted shares of a company, as per the procedure prescribed in rule 1D of the Wealth Tax Rules, which amount as 'provision for taxation' made by the assessed in the balance sheet in the column 'liabilities' is to be treated as liability.

(3.) IN view of the said authoritative pronouncement, the view taken by the Tribunal cannot be faulted. Accordingly, the question referred is answered in the affirmative.