1985 (4) TMI 116

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....alled M/s Kanjimal & Sons, Scindia House,New Delhi. For the purpose of wealth-tax assessments for the asst. yrs. 1977-78 and 1978-79 in the case of Smt. Brij Rani and for the asst. yr. 1979-80 in the case of Shri Vijay Kumar, the WTO revalued the closing stock of the firm of Kanjimal & Sons on the ground that the market value of the closing stock exceeded the book value by 20 per cent and thereby ....

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.... represent the market value on the basis of 38 per cent gross profit and brought the difference to wealth-tax in which the assessee's share amounted to the figures mentioned above. In other words what the WTO did was to re-work out the value of the closing stock on the basis of 38 per cent gross profit meaning thereby that the market value of he closing stock should be higher than the book value a....

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....ng this view he held in the other year in the assessee's own case and in the case of the other assessee that r. 2B(2) was wrongly applied and deleted the additions. The Revenue is aggrieved by these deletions and is in appeal before us. 2. The ld. Departmental Representative relying upon a decision of the Supreme Court in the case of Juggilal Kamlapat Bankers & Anr. vs. WTO (1984) 39 CTR (SC) 4....

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.... the book value, then the market value of that asset should be adopted for wealth-tax purposes. There is no quarrell with than proposition and that is that is the enunciation of law and that has to be followed and applied. But the point for consideration is whether the market value of the closing stock was not property shown in the books of account and the book value shown was less 20 per cent tha....