COMMISSIONER OF WEALTH TAX Vs. KUSUM BADER

JUDGEMENT

(1.) THIS application relating to the assessment year 1979-80 has been moved by the Revenue under Section 27(3) of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act"), for referring for consideration of this court the following two questions which are said to arise out of the order dated August 31, 1987, passed by the Income-tax Appellate Tribunal, Jaipur Range, Jaipur (hereinafter referred to as "the Tribunal").

(2.) WHETHER, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the firm, Cosmopolitan Trading Corporation, Jaipur, is an industrial undertaking within the meaning of Section 5(1)(xxxii) and consequently, in holding that the value of the assessee's interest in that firm is exempt under Section 5(1)(xxxii) of the Wealth-tax Act, 1957 ?"

(3.) IN the present case, the question under consideration with regard to the applicability of Rule 2B(2) of the Wealth-tax Rules relating to the market value of the closing stock would depend upon the nature of the evidence produced by the Department and the assessee during the proceedings for the particular assessment year and, therefore, the decision on that issue in respect of a particular assessment year cannot be held to be conclusive for another assessment year. The present case is more similar to the decision of the Supreme Court in CIT v. Brij Lal Lohia and Mahabir Prasad Khemka [ 1972] 84 ITR 273, wherein it was held that the decision in respect of one assessment year did not operate as res judicata in the assessment for a different period. IN our opinion, therefore, the principle of res judicata cannot be made applicable to the present case and reference cannot be denied on this ground.