1994 (2) TMI 20

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....NDANI J.---The Income-tax Appellate Tribunal, Ahmedabad Bench "C", has referred for the opinion of this court under section 27 of the Wealth-tax Act, 1957, the following questions : " 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal has been right in law in quashing and setting aside the order of the Commissioner of Wealth-tax made under section 25(2) of the....

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....n his account in the balance-sheet of the firm and to the same he proportionately added the appreciation of property of the firm. The balance-sheet of the firm had machinery on the assets side. The assessee did not take into consideration the appreciation in value of the machinery of the firm. The assessments were made by the Wealth-tax Officer under section 16(3) on December 12, 1977. The Commiss....

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.... orders of the Wealthtax Officer was that there had been in recent years a steep increase in the market value of the plant and machinery used in the manufacture of art silk yarn fabrics, which was the business carried on by the firm in which the assessee was a partner. In the view of the Commissioner, the Wealth-tax Officer ought to have insisted upon a revaluation of the plant and machinery in qu....

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....sumed in the absence of any material to support such assumption. In this context, we may refer to the provisions of rule 2B(2) of the Wealth-tax Rules, 1957, which were applicable at the relevant time, in which it was provided that notwithstanding anything contained in sub-rule (1), where the market value of an asset exceeded its written down value or its book value or the value adopted for purpos....