COMMISSIONER OF WEALTH TAX Vs. K K BIRLA

JUDGEMENT

(1.) IN this reference under S. 27(1) of the WT Act, 1957 ('the Act) for the asst. yr. 1981-82 the following questions of law have been referred to this Court:

(2.) IN course of the assessment proceedings, the WTO noticed that the assessee along with the other co-sharers had held coffee land and other assets at Billigiri Rangan Estate. He also held certain shares in the Hyderabad Agencies (p) Ltd., Birla Brothers (P) Ltd. and Jayant Investment Corporation (P) Ltd. The shares of all these companies were not quoted in any recongised stock exchange.

(3.) THE assessee had also declared the value of the shares of the Hyderabad Agencies (P) Ltd. at Rs. 12.81 per share, that of the Birla Brothers (P) Ltd. at Rs. 910 per share and of the Jayant Investment Corpn. (P) Ltd. at Rs. 26.84 per share on the basis of the report of a registered valuer. The WTO however, made valuation under r. 1D of the WT Rules, 1957 of the shares of the Hyderabad Agencies (P) Ltd. at Rs. 16.57 per share and those of the Birla Brothers (P) Ltd. at Rs. 1260.06 per share (as per revised order under S. 35). The WTO adopted the Valuation of the shares of the Jayanat Investment Corporation Ltd., as per Board's Circular No. 332A, dt. 31st March, 1982 (See taxmann's Direct Taxes Circulars, Vol. 1, 1985 edn., p. 1459) at Rs.102.04 per share.