COMMISSIONER OF WEALTH TAX Vs. L G BALAKRISHNAN

JUDGEMENT

(1.) AT the instance of the Revenue two questions were referred to this court. The first question is :

(2.) THE assesses is a Hindu undivided family holding shares in certain companies. Those shares were not quoted on the stock exchange. THE assessce submitted that in his assessment for the assessment year 1981-82 before the Inspecting Assistant Commissioner (Wealth-tax) (Assessment) for computing" the value of the aforesaid shares under rule 1D of the Wealth-tax Rules, 1957, the provision for taxation should not be reduced by the amount of advance tax payable by the companies concerned. THE Inspecting Assistant Commissioner rejected the contention of the assessee. But, however, on appeal, the Commissioner of Wealth-tax (Appeals) accepted the case of the assessee. On appeal by the Department, the Income-tax Appellate Tribunal held that for computing the value of unquoted shares of a company under rule 1D of the Wealth-tax Rules, 1957, the provision for taxation should not be reduced by the amount of the advance tax paid by the company concerned. Only under the said circumstances the reference was made to this court.

(3.) AN identical question came up for the consideration of this court in the case of V. M. Rao (Individual) v. CWT [1998] 229 ITR 813, wherein it was held that (headnote) :