COMMISSIONER OF WEALTH TAX Vs. SHARADPAT SINGHANIA

JUDGEMENT

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

(2.) Briefly stated the facts giving rise to the present reference are as follows : The present reference relates to the assessment years 1971-72 to 1974-75. The respondent had some equity shares of M/s. M. P. Sugar Mills Ltd. While computing the value of such shares in accordance with Rule 1D of the Wealth-tax Rules, the Wealth-tax Officer did not allow the deduction on account of deferred cane price, which was the liability of the company on the ground that the said liability was not shown in the balance-sheet of the company. However, the Appellate Assistant Commissioner accepted the claim of the respondent which has been affirmed by the Tribunal.

(3.) We have heard Sri Dhananjay Awasthi, learned standing counsel appearing for the Revenue.