High Court of Punjab and Haryana, Chandigarh
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Commissioner of Wealth Tax, Jalandhar v. Sh. Rachpal Singh. - WTR-6-1992  RD-P&H 7395 (18 September 2006)
W.T.R. Nos.6 to 14 of 1992
Date of decision: 13.09.2006
Commissioner of Wealth Tax, Jalandhar
Sh. Rachpal Singh.
CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOEL
HON'BLE MR JUSTICE RAJESH BINDAL
Present: Mr. Akshay Bhan, Advocate
for the respondent.
Following questions of law have been referred for opinion of this Court by the Income Tax Appellate Tribunal, Amritsar, arising out of its order dated 22.11.1991 in respect of assessment years 1980-81 to 1988-89:-
1. "Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in directing the Assessing officer to accept the version of the assessee for determination of valuation of shares on the basis of yield method, when the same is required to be evaluated in accordance with Rule 1D of the Wealth-tax Rules, 1957, which is mandatory?"
2. "Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in directing the Assessing Officer to determine the value of the shares of companies held by the assessee on yield method basis ignoring the binding decision of the Hon'ble Punjab and Haryana High Court in the case of Sh. Ashok Oswal in 148 ITR 620?"
3. "Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was legally justified in not following the decision of the Hon'ble Punjab and Haryana High Court which fully covers the issue involved?" W.T.R. Nos.6 to14 of 1992
We find that the questions referred above, are concluded in favour of the revenue by the judgment of Hon'ble Supreme Court in Bharat Hari Singhania and others v. Commissioner of Wealth Tax (Central) and others AIR 1994 SC 1355, wherein it was held that Rule 1 D of the Rules has to be followed in every case where unquoted equity shares of a company (other than investment company or a managing agency company) have to be valued.
Following above judgment, the question is answered in favour of the revenue and against the assessee.
( ADARSH KUMAR GOEL )
September 13, 2006 ( RAJESH BINDAL )
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