Smt. Krishna Lal vs Commissioner Of Wealth Tax
1996 Latest Caselaw 803 Del

JUDGMENT

By The Court

1. At the instance of the assessee, with reference to asst. yr. 1968-69, the question referred for the opinion of this Court is as under :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the value of 804 preference shares of the New Bhopal Textile Mills Ltd. which the assessee owned was computable in accordance with r. 1C of the WT Rules only ?"

2. In Mrs. Prem Shamsher Singh vs. CWT (1994) 210 ITR 233 (Del), following the decision of the Supreme Court in Bharat Hari Singhania & Ors. vs. CWT & Ors. , this Court while dealing with the question pertaining to r. 1D of the WT Rules, 1957 held that the said Rule was applicable to the valuation of unquoted equity shares as it was mandatory in character and that the procedure prescribed in the said Rule had to be adhered to strictly and there could be no modification or adjustment in the balance sheet other than those provided in Expln. II to r. 1D. The ratio of the aforesaid cases would equally apply to r. 1C, dealing with preference unquoted shares. The language of r. 1C is more or less similar to the language used in r. 1D.

3. In view of the aforesaid, the question is answered in the affirmative, in favour of Revenue and against the assessee. No costs.