High Court upholds mandatory nature of rule 1D in Wealth-tax Rules, following Supreme Court precedent.

The High Court of Rajasthan ruled in favor of the Department based on the Supreme Court's decision in Bharat Hari Singhania v. CWT [1994] 207 ITR 1, holding that rule 1D of the Wealth-tax Rules is mandatory, contrary to the Income-tax Appellate Tribunal's view that it is directory.

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The High Court of Rajasthan considered a question of law regarding the application of rule 1D of the Wealth-tax Rules. The Income-tax Appellate Tribunal had held the rule as directory, but the Supreme Court ruled it as mandatory in Bharat Hari Singhania v. CWT [1994] 207 ITR 1. The High Court decided in favor of the Department based on the Supreme Court's ruling.

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