COMMISSIONER OF WEALTH TAX Vs. YADUPAT SINGHANIA

JUDGEMENT

(1.) The Income-tax Appellate Tribunal, Allahabad, has referred the following questions of law under Section 27(1) of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act"), for the opinion of this court:

(2.) Briefly stated the facts giving rise to the present reference are as follows : The assessee holds 1,860 shares in J.K. Jute Mills Ltd. They were not quoted in the stock exchange. The Wealth-tax Officer referred the matter of their valuation to the Valuation Officer. The Valuation Officer valued them at the rate of Rs. 7.76 per share. In doing so, he applied rule ID of the Wealth-tax Rules, 1957.

(3.) The respondent-assessee preferred an appeal before the Commissioner of Wealth-tax (Appeals) who while allowing the appeal directed the Wealth-tax Officer to rework out the value of shares of J.K. Jute Mills Ltd., under rule ID after deducting the accumulated outstanding dividend as per income-tax assessments in the case of the above company and accordingly modified the value of the shares to that extent.