COMMISSIONER OF WEALTH TAX Vs. N DAMODARAN

JUDGEMENT

(1.) AT the instance of the Revenue, the question that has been referred to us is as to whether on the facts and in the circumstances of the case and having regard to Rule 1D of the Wealth-tax Rules, 1957, the Appellate Tribunal was right in holding that the value of the shares held by the assessee in Premier Cotton Spinning Mills Limited, should be adopted at Rs. 140 per share for the assessment year 1976-77.

(2.) THE order of the Tribunal discloses that these shares were unquoted during the relevant assessment year and that the Wealth-tax Officer had applied Rule 1D to estimate the value of the shares. THE Tribunal has allowed the assessee's appeal against the order of the Wealth-tax Officer and has held that the shares are to be valued at the figure of Rs. 140 per share as there had been some transactions during that assessment year. THE Tribunal also relied on ils earlier order in the case of Sabitha Chandran-W. T. A. Nos. 659 and 660 of 1977-78. That order of the Tribunal in the ease of Sabitha Chandran was considered by this court in the case of CWT v. Smt. Sabita Chandran [1985] 151 ITR 210. This court dismissed the petition filed by the Commissioner for directing the Tribunal to make a reference, by holding that even though the shares of the company were not quoted on the stock exchange prior to March, 1977, there had been transactions in the shares as registered in the books of the company at values which were considerably less than the market value.