Small additional wealth-tax liability was held insufficient to justify a reference to the High Court.

The Rajasthan HC declined to direct a reference under section 27(3) of the Wealth-tax Act, 1957, because the proposed answers to questions Nos. 1 and 2 would have produced only a nominal additional wealth-tax liability. The Court treated the very small tax consequence as insufficient to justify requiring the Tribunal to state a case for High Court decision, and therefore refused the request for reference.

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Issues: Whether, in view of the very small additional tax liability arising from questions Nos. 1 and 2, the Tribunal should be directed under section 27(3) of the Wealth-tax Act, 1957, to refer those questions to the High Court.

Analysis: The application sought a direction to the Tribunal to state a case on the remaining questions. The Court noted that the proposed addition to wealth, if the questions were answered in favour of the Revenue, would result in only a nominal additional tax burden. On that basis, the Court treated the matter as not warranting a reference for decision by the High Court.

Conclusion: The request for a direction to refer questions Nos. 1 and 2 was refused.

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