1978 (9) TMI 38

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....ment years 1969-70 and 1970-71, the original assessment was completed on 26th October, 1970. The officer reopened them on the ground that certain wealth had escaped assessment. The assessee filed returns under protest. The WTO passed a fresh assessment order on 9th March, 1973. In this he, inter alia, enhanced the value of shares of M.P. Sugar Mills owned by the assessee. He adopted the method pre....

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....es. On the merits the Tribunal agreed with the assessee's submission that the depreciation reserve was liable to be added to the liabilities while computing the valuation of the shares under sub-cl. (c) of cl. (2) of the second Explanation to r. 1D, W.T. Rules. On this view, the Tribunal directed the WTO to correct the amount of the liability. At the instance of the CWT, the Tribunal has referre....

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....clause of this Explanation categorises the kinds of liabilities in the balance-sheet which are not to be treated as liabilities for the purpose of this computation. Clause (c) mentions : " (c) reserves, by whatever name called, other than those set apart towards depreciation." It is evident that reserves set apart towards depreciation are to be excluded from the operation of cl. (2)(c). In other....