| Case ID |
3bad2781-c7e6-48b8-8d39-9caeca8fb682 |
| Body |
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| Case Number |
Wealth Tax Reference Application No.14 of 1989 |
| Decision Date |
Nov 27, 1990 |
| Hearing Date |
|
| Decision |
The Rajasthan High Court rejected the reference application filed by the Commissioner of Wealth Tax under section 27(3) of the Wealth Tax Act, 1957, due to the negligible tax amount involved, which was Rs. 858. The court noted that the matter pertained to assessment years 1980-81 and 1981-82, which were nearly a decade old, and even if a reference was made and decided in favor of the revenue, it would not serve any practical purpose due to the small amount involved. The court emphasized that the administrative burden and the expenses related to the proceedings outweighed the benefits of pursuing the reference. |
| Summary |
In the case of Wealth Tax Reference Application No.14 of 1989, the Rajasthan High Court addressed a reference application under the Wealth Tax Act, 1957. The case revolved around the valuation of unquoted shares held by the respondent-assessee in two private limited companies. The court highlighted the minimal tax effect of Rs. 858 for the assessment years in question, which were 1980-81 and 1981-82. The court noted the long duration since the original assessment and concluded that pursuing the matter further would be futile given the negligible amount involved. The decision reiterated the principle that the administration of justice should not be burdened with cases where the financial stakes are minimal. This case serves as a critical reference for the application of wealth tax laws and the judicial approach towards cases involving minimal tax implications, showing the court's inclination to avoid unnecessary litigation. Keywords: Wealth Tax Act, valuation of shares, minimal tax implications, Rajasthan High Court, judicial efficiency. |
| Court |
Rajasthan High Court
|
| Entities Involved |
Not available
|
| Judges |
INDER SEN ISRANI,
MRS. MOHINI KAPUR
|
| Lawyers |
Shri V.K. Singhal,
Shri N.M. Ranka
|
| Petitioners |
COMMISSIONER OF WEALTH TAX
|
| Respondents |
GIRDHARI LAL SARAF
|
| Citations |
1993 SLD 321 = 1993 PTD 661
|
| Other Citations |
CGT v. Executors and Trustees of the Estate of Late Sh. Ambalal Sarabhai (1988) 170 ITR 144 (SC),
CGT v. Kusumben D. Mahadevia (Smt.) (1980) 122 ITR 38 (SC),
CWT v. Sripat Singhania (1978) 112 ITR 363 (All.),
Grace Collis (Mrs.) v. CWT (1988) 172 ITR 597 (Ker.),
Sharbati Devi Jhalani v. CWT (1986) 159 ITR 549 (Delhi)
|
| Laws Involved |
Wealth Tax Act, 1957,
Wealth Tax Rules, 1957
|
| Sections |
27(3),
1D
|