SHRIPATI SINGHAI IND Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal (Allahabad Bench) referred the following question for the assessment year 1975-7C to this court for its opinion :

(2.) THE Tribunal reached a conclusion following a decision of this court in the case of Bharat Hari Singhania v. CWT [1979] 119 ITR 258 and following that decision concluded that while for working out the fair market value of the assets for inclusion in the assessee's net wealth under the Wealth-tax Act, 1957, deduction cannot be allowed of the estimated notional capital gains tax in the event of sale of those assets. THE said judgment has been affirmed by the Supreme Court in Bharat Hari Singhania v. CWT [1994] 207 ITR 1.