COMMISSIONER OF WEALTH TAX Vs. MANIK CHAND AGARWALLA

JUDGEMENT

(1.) IN this reference under S. 27(1) of the WT Act. 1957 ('the Act') for the asst. yr. 1975-76 the following question of law has been referred to his Court:

(2.) THE assessee moved the CIT (A) contending that the WTO should have calculated the value of the unquoted shares on the basis of the balance sheet of Baharia Bros.(P) Ltd. as on 26th Oct., 1973 preceding its valuation date of 31st Aug., 1974. It was further contended that if the earlier balance sheet was taken as the basis, the value of those shares would work out at Rs.79.39 per share. The CIT (A) was convinced by the aforesaid arguments of the assessee and held that under r. 1D, the valuation of unquoted shares had to be based on the balance sheet of the limited company drawn up on a date immediately preceding the valuation date (vide Explanation (i) to r. 1D). He, therefore, directed the WTO to revise his calculation on the basis of the earlier balance sheet of the limited company in accordance with r. 1D.

(3.) ON these facts the question set out hereinbefore has been referred to the Court. We are of the view that the question has to be reframed. We, therefore, reframe the question as follows: