COMMISSIONER OF WEALTH TAX Vs. VASANTLAL D MEHTA

JUDGEMENT

(1.) THIS is a reference at the instance of the Department. The Tribunal has referred three questions of law to this Court for opinion under S. 27(1) of the WT Act, 1957. The questions read thus :

(2.) WHETHER , on the facts and in the circumstances of the case, on the cash system of accounting followed by the assessee, his share in the fees outstanding on the valuation date in the case of the firms in which he was a partner could be included in his net wealth as on the relevant valuation date ?

(3.) IT is pertinent to mention that this Court in that case had followed the Supreme Court decision in the case of CWT vs. Vysyaraju Badreenarayana Moorthy Raju (1985) 45 CTR (SC) 47 : (1985) 152 ITR 454 (SC). The Supreme Court had approved the opinion expressed by the Andhra Pradesh High Court in Vadrevu Venkappa Rao vs. CWT (1968) 69 ITR 552 (AP), CWT vs. Pachigolla Narasimha Rao (1980) 18 CTR (AP) 122 : (1982) 134 ITR 640 (AP) and the Calcutta High Court in Dipti Kumar Basu vs. C WT (1976) 105 ITR 450 (Cal) and disapproved the view taken by the Orissa High Court (CWT vs. Vysyaraju Badreenarayana Moorthy Raju (1971) 79 ITR 330 (Ori)) in that case which came up before the Supreme Court and the Karnataka High Court in A. T. Mirji vs. CWT (1980) 18 CTR (Ker) 142 : (1980) 126 ITR 93 (Ker). Relevant observations of the Supreme Court quoted in that judgment read thus :