LAWS(MPH)-1987-8-47

CHHAGANLAL PANCHULAL Vs. COMMISSIONER OF WEALTH TAX

Decided On August 12, 1987
CHHAGANLAL PANCHULAL Appellant
V/S
COMMISSIONER OF WEALTH-TAX Respondents

JUDGEMENT

(1.) BY this reference under Section 27(1) of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion ;

(2.) THE material facts giving rise to this reference, briefly, are as follows:

(3.) HAVING heard learned counsel for the parties, we have come to the conclusion that this reference has to be answered in the negative and in favour of the assessee. Under Section 7 of the Act, the market value of plant and machinery on the valuation date would be the value of that asset for the purposes of the Act. The valuation date in the instant case was November 3, 1975, when the relevant accounting year ended. The Tribunal, therefore, was not justified in holding that the value of the plant and machinery should be taken to be the written down value thereof as on the first day of the accounting year in question irrespective of the depreciation allowed during the year.