1971 (9) TMI 12

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....alance-sheet of the company should have been deducted ? The Tribunal held against the assessee on that question but at the instance of the assessee it submitted that question along with several other questions to the High Court for its opinion. The High Court answered all the questions referred to it in favour of the department by its judgment dated August 2, 1967. But, thereafter, on an application by the assessee, it amended the answer given by it to question No. 2(i), the question referred to earlier, purporting to follow the decision of this court in Kesoram Industries and Cotton Mills Ltd. v. Commissioner of Wealth-tax (Central), Calcutta. Aggrieved by the amendment so made, the Commissioner of Wealth-tax, West Bengal, has come up in a....

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....r rejected those contentions. He proceeded to assess the assessee in respect of both those years on the basis of the balance-sheets. The Appellate Assistant Commissioner confirmed the order of the Wealth-tax Officer. On a further appeal to the Tribunal, the Tribunal came to the conclusion that the estimated tax liability of the assessee as on the valuation dates should be deducted from the gross value of the assets. But it took the view that if there were any encroachments on the assets of the company for the tax liability, the company certainly would have provided for it in its accounts before presenting the balance-sheet and the profit and loss account to the shareholders and the company did not make any provision for the estimated tax li....

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....ether, on the facts and in the circumstances of the case, in determining the break up value of the shares held by the assessee in Messrs. Indra Singh and Sons Pvt. Ltd., the following amounts should have been deducted from the assets shown in the balance-sheet of the said company as on March 31, 1957: (i) Estimated tax liability amounting to Rs. 8,00,000 which was not provided for in the balance-sheet......" Similar was the question relating to the year 1958-59 excepting the fact that the tax liability was shown as Rs. 9,50,000. A superficial reading of this question may give a wrong impression as to its scope. But that question should be understood on the basis of the facts found by the Tribunal. In our opinion, the High Court ....