COMMISSIONER OF WEALTH TAX Vs. MASKATI A E

JUDGEMENT

(1.) THIS reference under S. 27(1) of the WT Act arises out of wealth tax assessment proceedings of Shri A. E. Maskati, Bombay, who is now no more and whose interests are now represented by two executors of his estate for whom Shri Pandit appears.

(2.) THE assessee owned 461 shares in Garlick and Co. (P) Ltd. and the controversy in the reference relates to the valuation of these shares. The WTO determined the break up value of these shares at Rs. 1,611 per share on the basis of the balance sheet of the company as at 31st Dec., 1960. The material valuation date was 8th Nov., 1961, the relevant assessment year in question being 1962 63. The break up value was arrived at by taking the total of the paid up capital, reserves and surplus and dividing it by 3,471 which was the number of the equity shares of the company.

(3.) ON these facts, the following question has been referred to this Court at the instance of the Revenue :