WEALTH TAX ACT, 1963 & WEALTH TAX RULES, 1963

(XV OF 1963)

 Section—7(2)(a)

Wealth tax—Assessrnent—-Wealth Tax officer can take recourse to one of the methods of valuation, but not both—When bulk valuation of the net wealth of a company is adopted it. is not permissible to value some of the assets separately on the plea of making adjustment.

The only question was whether to value the shares from the book value or maket value. The Wealth Tax Officer having made. The bluk valuation, which could only be done under sub-rule (9). of Rule 8, attempted to value the shares on the market price which is authorised under sub-rule (2)—He could not do it both ways—The legislative scheme does not provide for such assessment—The discretion that is given by the “as the circumstances may require” occurs in sub-section (2) and not for sub-section( I). The Wealth Tax Officer in computing under Section 7(2) cannot take recourse to the discretion given by the expression “as the circumstances may require’ for computing it under section 7(1).

Commissioner of Income Tax, Dacca Vs. Adamjee Sons Ltd. 2BLD (AD) 21

Ref: 921TR 101; 1969 ITR 388—Cited.

WEALTH TAX RULES, 1963

 

Rule—8(9)

Wealth tax—Assessment—-Wealth Tax officer can take recourse to one of the methods of valuation, but not both—When bulk valuation of the net wealth of a company is adopted it is not permissible to value some of the assets separately, on the plea of making adjustment. The only question was whether to value the shares from the book value or market value. The Wealth Tax Officer having made the bluk valuation which could only be done under sub-rule (9) of Rule 8 attempted to value the shares. on the market price which is authorised under sub-rule (2). He could not do it both ways. The legislative scheme does not provide for such assessment. The discretion that is give as the circumstances may require” occur in sub-section (2) and nor for subsection (l). The Wealth Tax Officer in com puting under section 7(2) cannot take recourse to the discretion given by the expression as the circumstances may require” for computing it under section
7(1).

Commissioner of Income Tax, Dacca Vs. Adamfee Sons Ltd. 2BLD(AD)21

Ref:921TR 101; 19691TR388—Cited.’

Rule—8(9)

Wealth Tax—Assessee Company engaged in business of acquiring houses and letting them out on monthly rent for earning profit upon which it declares dividend— Whether rule 8(3) or rule 8(9) of Wealth Tax Rules, 1963 shall apply for assessment of wealth tax..

The assessee Company is cariving on a business within the meaning of s.23) of the income Tax Act—Since it is a business, the Wealth Tax Officer is obliged to determine the value Of the net wealth representing the various assets of the business and the method of computing has been provided by the Rules. The controversy is whether rule 8(3) or rule 8(9) will be attracted in the nature of the activities of the assessee as business or trading—therefore rule 8(9) is applicable.

Commissioner of Taxes Vs. M/S. Free School Street Properties Ltd. 2BLD (AD) 27.

Ref: 1962 ITR 362; 1971 ITR 547; 1972 ITR 700—Cited.

Disclaimer:

The information contains in this web-site is prepared for educational purpose. This site may be used by the students, faculties, independent learners and the learned advocates of all over the world. Researchers all over the world have the access to upload their writes up in this site. In consideration of the people’s participation in the Web Page, the individual, group, organization, business, spectator, or other, does hereby release and forever discharge the Lawyers & Jurists, and its officers, board, and employees, jointly and severally from any and all actions, causes of actions, claims and demands for, upon or by reason of any damage, loss or injury, which hereafter may be sustained by participating their work in the Web Page. This release extends and applies to, and also covers and includes, all unknown, unforeseen, unanticipated and unsuspected injuries, damages, loss and liability and the consequences thereof, as well as those now disclosed and known to exist.  The provisions of any state’s law providing substance that releases shall not extend to claims, demands, injuries, or damages which are known or unsuspected to exist at this time, to the person executing such release, are hereby expressly waived. However the Lawyers & Jurists makes no warranty expressed or implied or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process disclosed or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product process or service by trade name, trade mark, manufacturer or otherwise, does not necessarily constitute or imply its endorsement, recommendation or favouring by the Lawyers & Jurists. The views and opinions of the authors expressed in the Web site do not necessarily state or reflect those of the Lawyers & Jurists. Above all, if there is any complaint drop by any independent user to the admin for any contents of this site, the Lawyers & Jurists would remove this immediately from its site.