COMMISSIONER OF WEALTH TAX Vs. T R JAYARAMAN

JUDGEMENT

(1.) THE substantive question referred to us in this reference is as to whether Rule 1D of the Wealth-tax Rules, 1957, is mandatory or directory.

(2.) THE Supreme Court in the case of Bharat Hari Singhania v. CWT while upholding the validity of Rule 1D of the Wealth-tax Rules has held that (headnote): "Rule 1D has to be followed in valuing each and every case of unquoted equity shares of a company (other than an investment company or a managing agency company). It is not a matter of choice or option. THE rule-making authority has prescribed only one method for valuing the unquoted equity shares. If this method were not to be followed, there is no other method prescribed by the rules. Where there is a rule prescribing the manner in which a particular property has to be valued, the authorities under the Act have to follow it. THEy cannot devise their own ways and means for valuing the assets."