COMMISSIONER OF WEALTH TAX Vs. CHANDRAKALA LAL

JUDGEMENT

(1.) The following question is involved in this reference under Section 27(1) of the Wealth-tax Act, 1957 ;

(2.) The reference relates to the wealth-tax assessment years 1963-64 and 1964-65, for which the respective valuation dates are March 31, 1963, and March 31, 1964. The assessee held certain shares in two private limited companies, namely, M/s. S. Lal & Co. (P.) Ltd. and M/s. Lal Holdings (P.) Ltd. Messrs. Lal Holdings (P.) Ltd. held certain shares in Messrs. S. Lal & Co. (P.) Ltd. The shares held by the assessee in these two companies were valued by the Wealth-tax Officer by adopting the break-up method of valuation of assets and not on the basis of book value of those shares. The appellate authorities had set aside the said valuation by holding that though the break-up method of valuation was permissible in the case of these two companies, it was not applicable in the case of an assessee- shareholder and the shares held by Messrs. S. Lal & Co. (P.) Ltd. in Messrs. Lal Holdings (P.) Ltd. should be valued on the basis of their book value as shown in the balance-sheet of the former company without any such adjustment and dismissed the appeals filed by the department. '

(3.) Mr. B. L. Pal, learned counsel for the revenue, has questioned the validity of the above reasonings and has urged that the break-up method of valuation of assets has been accepted by the Tribunal and, therefore, if it is held that this method is not applicable in the case of the assessee, it would lead to an anomalous position.