COMMISSIONER OF WEALTH TAX Vs. A RAMAMOORTHY

JUDGEMENT

(1.) THIS is a petition filed by the CWT, Madurai under s. 27 (3) of the WT Act, 1957 (hereinafter referred to as'the Act')seeking a direction to the Tribunal to state a case and refer the following questions of law. "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the provisions of r. 1d of the WT Rules are only directory and not mandatory and that the yield method should be taken as the criterion for determining the value of unquoted equity shares held by the assessee " 2. Without prejudice to the fact that r. 1d is mandatory, whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the value of unquoted equity shares held by the assessee should be adopted on the basis of average of the values arrived at by dividend yield method and profit earning method "" *

(2.) THE assessee is an HUF and is a owner of certain unquoted equity shares of certain companies. In the return filed by the assessee for the asst. yr. 1979-80, the assessee returned the value of the shares computed on yield basis. THE AO held that the unquoted equity shares should be valued as provided under r. 1d of the WT Rules and hence, he valued the assessee as provided under r. 1d of the Rules.

(3.) THE Tribunal is directed to pass an order in conformity with the decision rendered by us. .