COMMISSIONER OF INCOME TAX Vs. ADAMJEE SONS LTD.

JUDGEMENT

(1.) This appeal by special leave is directed against the judgment and order of the High Court Division in an application under section 27 (1) of the Wealth Tax Act, 1972. The respondent was assessed to Wealth Tax by the Wealth Tax Officer, Companies Circle (I), Dacca for the assessment year 1963/64 on a total sum of Tk. 2,96,61,282/- by an order dated 14.6 1968 as against the net sum of Tk. 1,55,93,612/-as shown by the assesses in his return. On appeal the Appellate Assistant Commissioner allowed the appeal in part and deleted the addition made on account of revaluation of the share at market price. The department preferred an appeal before the Appellate Tribunal and the Tribunal set aside the order of the Appellate Assistant Commissioner and upheld the order of the Wealth Tax Officer. Thereafter the assessee respondent filed an application under section 27 of the Wealth Tax Act before the High Court Division. The learned Judges of the High Court Division came to the conclusion that the Wealth Tax Officer is to determine the net value of the assets of the business as a whole, as contemplated under section 7(2) (a) Wealth Tax Act read with Rule 8(9).

(2.) Leave was granted to consider whether the High Court Division was correct in taking the view that the Wealth Tax Officer is required to take into account the face value of the shares as held by the assessee and they must be valid under section 7(1) of the Wealth Tax Act.

(3.) Mr. Mahmudur Rahman appearing for the Revenue canvassed that the learned Judges did not consider that in determining the value of the assets the Wealth Tax Officer while taking recourse to the provisions of section 7(2) (a) of the Wealth Tax Act can make such adjustment in valuation given in the balance sheet, as he thinks fit, in the facts and circumstances of '.he case. He further canvassed that in the instant case the valuation of the shares held by the assessee in other Companies under section 7(1) constitutes necessary adjustment "therein as the circumstances of the case may require" as contemplated under section 7 (2) (a) of the Wealth Tax Act.