CIT Vs. CHHOTEY LAL

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 opinion to this Court: '1. Whether on the facts and in the circumstances of the case, the Tribunal was justified in applying income capitalisation method on average profit for three years in valuing the Cold Storage in dispute and also holding that book value of the assets is to be taken into consideration and capital in firm is not to be added back separately ?

(2.) WHETHER on the facts and in the circumstances of the case, the Tribunal was justified in concluding that the Cold Storage is an industrial undertaking within the meaning of section 5(1) of the Wealth Tax Act, 1957 and thereby allowing the assessee's claim for deduction under the said provisions ?' 2. It may be mentioned here that the Tribunal by a consolidated order dated 19 -8 -1992 had decided nine reference applications filed by the five assessees who were partners, in their representative capacity in the firm M/s. Vishwanath Cold Storage and Industries, Jaunpur, relating to the assessment year 1985 -86 in the case of Sri Chhotey Lal Hindu Undivided Family, Jaunpur, and in respect of the assessment years 1985 -86 and 1986 -87 of Sri Bankey Lal Hindu Undivided Family, Sri Chhagan Lal Hindu Undivided Family, Sri LaIji Hindu Undivided Family and Sri Bhagwati Seth Hindu Undivided Family of Jaunpur.

(3.) WE have heard the learned counsel for the parties.