COMMISSIONER OF WEALTH TAX Vs. RAMAKRISHNA BAJAJ HUF

JUDGEMENT

(1.) THESE are applications under S. 27(3) of the WT Act, 1957 ("the W. T. Act"), filed by the CWT, Vidarbha, Nagpur, requiring the Tribunal to state the case and to refer to the High Court the following questions of law :

(2.) THE controversy arises about the computation of market value of unquoted equity shares of a company (other than an investment company or a managing company agency) held by the assessees. Considering the practical difficulties in assessing the actual value of such shares, the Central Board of Direct Taxes, in terms of the authority conferred on it by S. 46 of the WT Act, made r. ID of the Wealth tax Rules, 1957 ("the Rules"), fixing a statutory formula for computation of the value for the purposes of the WT Act. Rule ID (minus the immaterial proviso, Expln. I, cls. (i) (b), (ii)(a) to (d) and (f) to Expln. II) read thus :

(3.) THAT cl. (ii)(e) to the Explanation II is somewhat clumsy is apparent. No wonder it has led to divergence of views between several High Courts.