COMMISSIONER OF WEALTH TAX Vs. RAM S

JUDGEMENT

(1.) IN these tax case references under section 27(1) of the Wealth-tax Act, 1957, at the instance of the Revenue, the following common question of law has been referred for the opinion of this court in respect of the assessment years 1972-73 and 1973-74 :

(2.) WITH reference to the same assessee, for a different assessment year, the same question came to be considered in the decision in CWT v. S. Ram [1984] 147 ITR 278 and it was held that, where a gratuity provision is based on a scientific or actuarial valuation and it truly reflects the discounted present value of the value of the assessee's future liability, such a provision must be deducted in arriving at the value of the shares of the company for the purpose of computation of the net wealth of the references as well : We may also point out that the decision in CWT v. S. Ram [1984] 147 ITR 278 formed the subject matter of special leave petitions in S. L. P. (C) Nos. 14051 to 14287 of 1989 and 1116 of 1986 and the Supreme Court also upheld the view taken by this court in CWT v. S. Ram [1984] 147 ITR 278 and dismissed the special leave petitions on January 22, 1990 (vide [1990] 181 ITR (St.) 227). In view of this, the common question referred to us as answered in the affirmative and against the Revenue. There will be no order as costs.