CHUNNILAL ONKARMAL PRVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS order shall also govern disposal of Misc. Petition No. 441 of 1985 (Sir Sarupchand Hukamchand Pvt. Ltd. & Anr. vs. Union of India & Anr.).

(2.) THE petitioner No. 1 is a company incorporated and registered under the Indian Companies Act, 1956 and the petitioner No. 2 holds equity shares in the said company and is also its managing director.

(3.) BY s. 40 of the Finance Act, 1983, it was, however, provided that notwithstanding anything contained in s. 13 of the Finance Act, 1960, wealth-tax shall be charged under the WT Act for every assessment year commencing on or from the first day of April, 1984 in respect of net wealth on the corresponding valuation date of every company, not being a company in which the public are substantially interested, at the rate of 2 per cent of such net wealth. Thus, by virtue of s. 40 of the Finance Act, 1983, wealth-tax was leviable on the net wealth of the company which is a "closely held company".