KRISHNA LAL Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) AT the instance of the assessee, with reference to asst. yr. 1968-69, the question referred for the opinion of this Court is as under :

(2.) IN Mrs. Prem Shamsher Singh vs. CWT (1994) 121 CTR (Del) 517 : (1994) 210 ITR 233 (Del), following the decision of the Supreme Court in Bharat Hari Singhania & Ors. vs. CWT & Ors. (1994) 118 CTR (SC) 125 : (1994) 207 ITR 1 (SC), this Court while dealing with the question pertaining to r. 1D of the WT Rules, 1957 held that the said Rule was applicable to the valuation of unquoted equity shares as it was mandatory in character and that the procedure prescribed in the said Rule had to be adhered to strictly and there could be no modification or adjustment in the balance sheet other than those provided in Expln. II to r. 1D. The ratio of the aforesaid cases would equally apply to r. 1C, dealing with preference unquoted shares. The language of r. 1C is more or less similar to the language used in r. 1D. In view of the aforesaid, the question is answered in the affirmative, in favour of Revenue and against the assessee. No costs.