| Case ID |
2fb8ae75-3bab-456a-b096-9d9c221a4281 |
| Body |
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| Case Number |
Income-tax Reference No. 13 of 1991 |
| Decision Date |
Aug 23, 1996 |
| Hearing Date |
|
| Decision |
The Kerala High Court, in this case, addressed the valuation of unquoted equity shares under the Indian Wealth Tax Act, 1957. The court ruled that for the purpose of valuation, the amount of advance tax paid should be deducted from the provision for taxation if shown as part of liability. The decision emphasized the importance of proper valuation methods in accordance with the Wealth Tax Rules, specifically referencing previous case law, including Bharat Hari Singhania v. CWT and others. The court concluded that the tribunal should follow the apex court's decision in handling the valuation of shares, aligning with established legal precedents. |
| Summary |
This case revolves around the valuation of unquoted equity shares for wealth tax purposes, highlighting the legal intricacies involved in the assessment process. The Kerala High Court's ruling clarified the treatment of advance tax payments within the framework of the Indian Wealth Tax Act, 1957. The court referenced previous landmark decisions to establish a consistent legal precedent, ultimately guiding the tribunal in its future assessments. This case is significant for tax practitioners and entities dealing with wealth tax assessments, as it underscores the necessity of adhering to proper valuation methods and understanding the implications of tax provisions on asset valuation. |
| Court |
Kerala High Court
|
| Entities Involved |
Not available
|
| Judges |
V. V. Kamat,
P.A. Mohammed
|
| Lawyers |
Not available
|
| Petitioners |
COMMISSIONER OF WEALTH TAX
|
| Respondents |
S.V. Doshi
|
| Citations |
1998 SLD 1143,
1998 PTD 1977,
(1998) 229 ITR 671
|
| Other Citations |
Bharat Hari Singhania v. CWT (1994) 207 ITR 1 (SC),
CIT v. Varoo (K.P.) (1998) 229 ITR 667 (Ker.),
CWT v. Mamman Varghese (1983) 139 ITR 351 (Ker.),
Kishori Lal Makundi Lal: In re (1941) 9 ITR 193 (All.)
|
| Laws Involved |
Indian Wealth Tax Act, 1957,
Indian Wealth Tax Rules, 1957
|
| Sections |
7(1),
R.1-D
|