| Case ID |
2235bc16-60da-40dd-9543-281a698a3be5 |
| Body |
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| Case Number |
Civil Appeal No. 51 of 1981 |
| Decision Date |
Jul 15, 1982 |
| Hearing Date |
|
| Decision |
The appeal was dismissed on the grounds that the Wealth Tax Officer cannot compute the value of shares at market price when using bulk valuation under Section 7(2)(a) of the Wealth Tax Act. The Court upheld the view that the Wealth Tax Officer should determine the net value of the assets of the business as a whole, as per the provisions of the Act. The judgment clarified that the Wealth Tax Officer must follow one of the two methods of valuation provided in the Wealth Tax Act but cannot combine them. The final decision confirmed the High Court Division's interpretation that the valuation of shares should be based on bulk valuation and not on market price, thus reinforcing the legal interpretation of the sections involved in wealth tax assessments. |
| Summary |
This case revolves around the interpretation of the Wealth Tax Act and the proper methodology for assessing the net wealth of a business. The Supreme Court of Bangladesh addressed the appeal concerning the valuation of shares held by Adamjee Sons Ltd. The case emphasized the importance of adhering to the prescribed methods of valuation under Section 7 of the Wealth Tax Act. The Court concluded that the Wealth Tax Officer should not mix the methods of valuation, specifically stating that if the bulk valuation method is adopted, the market valuation method cannot be applied subsequently. This decision is significant for tax law, ensuring clarity in wealth tax assessments and preventing arbitrary adjustments by tax officers. The ruling aligns with the need for consistent application of the law, reducing disputes in wealth tax evaluations. The decision is crucial for taxpayers and tax authorities alike, emphasizing transparency and adherence to statutory guidelines in wealth tax assessments. |
| Court |
Supreme Court of Bangladesh
|
| Entities Involved |
|
| Judges |
KEMALUDDIN HUSSAIN, C.J.,
FAZLE MUNIM,
ISLAM,
BADRUL HAIDER CHOWDHURY,
SHAHABUDDIN AHMED
|
| Lawyers |
Mahmudur Rahman, Advocate,
Md. Sajjadul Huq, Advocate-on-Record,
M. Hasan, Advocate,
S.M. Huq, Advocate-on-Record
|
| Petitioners |
COMMISSIONER OF Income Tax, DACCA
|
| Respondents |
ADAMJEE SONS LTD
|
| Citations |
1982 SLD 700,
(1982) 46 TAX 170,
1982 PTD 385
|
| Other Citations |
(1973) 92 ITR 101,
(1969) 73 ITR 388
|
| Laws Involved |
Wealth Tax Act,
Wealth Tax Rules, 1963
|
| Sections |
27(1),
7(2)(a),
46,
8(9)
|