| Case ID |
72e225f0-a04e-4d15-ab99-8287bded4cf6 |
| Body |
View case body. Login to View |
| Case Number |
WT REFERENCE Nos. 1 TO 3 AND 7 OF 1971 AND 28 OF 1 |
| Decision Date |
Sep 24, 1980 |
| Hearing Date |
|
| Decision |
The court held that the value of gold bullion should be assessed at its market price despite the restrictions imposed by the Defence of India Rules, 1962. The court found that there were no prohibitions against selling gold bullion as long as the sale was conducted according to the rules. Therefore, the Wealth Tax Officer's assessment at Rs. 1,32,705 was upheld, and the arguments from the assessee regarding inability to sell the gold bullion were rejected. |
| Summary |
This case revolves around the valuation of gold bullion for wealth tax assessment under the Wealth-tax Act, 1957. The primary legal question was whether the restrictions imposed by the Defence of India Rules, 1962, prevented the assessment of gold bullion at its market value. The Punjab and Haryana High Court clarified that while these rules impose certain restrictions, they do not outright prohibit the sale of gold bullion if done in accordance with the regulations. The decision reinforces the principle that market value should be used for tax assessments unless explicitly restricted by law. This ruling is significant for taxpayers and tax practitioners as it delineates the boundaries of asset valuation under wealth tax law. Legal professionals must be aware of the implications of such rulings on asset valuation, particularly in evolving regulatory environments. Keywords include wealth tax, gold bullion valuation, asset assessment, legal compliance, and tax regulations. |
| Court |
Punjab and Haryana High Court
|
| Entities Involved |
Not available
|
| Judges |
B.S. Dhillon,
M.R. Sharma
|
| Lawyers |
K.C. Puri,
D.N. Awasthy,
B.K. Jhingan
|
| Petitioners |
Raja Sir Harivendar Singh Brar Bans Bahadur of Faridkot State
|
| Respondents |
Commissioner of Wealth Tax
|
| Citations |
1982 SLD 832,
(1982) 133 ITR 52
|
| Other Citations |
H. H. Sir Harinder Singh Brar Bans Bahadur v. CWT [1975] 98 ITR 458 (Punj. & Har.),
Corporation of Calcutta v. Smt. Padma Debi, AIR 1962 SC 151 (SC)
|
| Laws Involved |
Wealth-tax Act, 1957
|
| Sections |
7
|