COMMISSIONER OF WEALTH-TAX Vs. BANKEY LAL

JUDGEMENT

(1.) THE Income Tax Appellate Tribunal, Allahabad has made a joint reference and has referred the following question of law for the opinion of this Court, under the Wealth Tax Act (hereinafter referred to as the Act) : - 'Whether on the facts and in the circumstances of the case, the Tribunal was justified in applying income capitalization method on average profit for three years in valuing the cold storage in dispute and also holding that the book value of the assets is to be taken into consideration and capital in the Firm is not to be added back separately?'

(2.) M /s. Vishwanath Seth Cold Storage and Industries, Chandpur, Jaunpur is a registered firm, consisting of 5 partners who are assessee each having 1/5th share. The dispute relates to the valuation of the 1/5th share in the said Firm for the assessment years 1975 -76 and 1976 -77 on the valuation date in respect of each partners who are assesses.

(3.) THE Valuation Officer Shri D.C. Goel valued the business of the firm as on 31.3.76 at Rs. 81,73,690/ - by capitalizing one year's profit only. Another Valuation Officer, Shri A.K. Luthra valued the plant and machinery as on 31.3.75 at Rs. 16,91,000/ - and as on 31.3.76 at Rs. 16,93,600/ -. The assessee also filed a valuation report dated 19.3.80 from Shri R.C. Mittal at Rs. 10,60,000/ - and another valuation report Dt. 18.7.76 from the approved valuer Shri Tara Chand, at Rs. 8.83,720/ -. The W.T.O. took the valuation of the business for the Asstt. Year 75 -76 at 10% loss of the report of the Valuation Officer as on 31.3.76 i.e. at Rs. 19,86,240/ - (1/5th share being Rs. 3,91,248/ - and 1/5th share in the plant and machinery at Rs. 3,36,220/ - as per the Valuation Officer. He valued for the assessment year 1976 -77 and 1/5th share interest in land and building at Rs. 3,04,900/ - and that in the plant and machinery at Rs. 3,15,720/ -.