COMMISSIONER OF WEALTH TAX Vs. SUMAN RATHI

JUDGEMENT

(1.) THE assessee (Smt. Suman Rathi) filed a wealth-tax return declaring her net wealth at Rs. 5,76,500 on June 26, 1976. THE Wealth-tax Officer found her wealth to be more than the returned wealth and issued a demand notice in the sum of Rs. 7,295.

(2.) AGAINST the said order, the assessee went up in appeal which was dismissed on June 21, 1979. The matter was, thereafter, brought to the Income-tax Appellate Tribunal. The point raised in the appeal was that the valuation of unquoted shares of M/s. Krishna Mills Ltd., Beawar, should be valued after deducting the gratuity liability. The appeal was partly allowed and the argument with regard to the valuation of shares was accepted holding that the gratuity liability was an ascertained liability and that it was to be deducted while valuing the unquoted shares of M/s. Krishna Mills Ltd. On reference being made by the Department, the question mentioned below was referred :