1977 (12) TMI 25

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....ed in computing the break-up value of the shares of these companies for purposes of wealth-tax assessment of the assessees for the assessment year 1962-63 ?" The reference arises out of the assessment under the Wealth-tax Act on an individual for the year 1962-63, the corresponding valuation date being 31st March, 1962. Amongst other assets, the assessee owned 4,620 shares of the face value of Rs. 100 each in a company called Caprihans (India) Pvt. Ltd. Similarly, he held 800 shares of the face value of Rs. 50 each in a company called Mangaldas H. Verma Pvt. Ltd. In valuing these shares, the Wealth-tax Officer adopted the break-up method and in doing so, considered that the provision for additional super-tax under section 104 of the Act o....

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....efore an order was passed under section 23A, the possible liability to super-tax under that section could not be said to have ripened into a debt. It was contended before the Madras High Court that the liability to pay additional super-tax under section 23A sprang not from the order which the Income-tax Officer may make, but from section 23A itself. The Division Bench of the Madras High Court considered the scheme of section 23A and observed at page 113 : "The structure of section 23A and the manner in which the liability to additional super-tax arises thereunder leave no room for doubt that the liability is not charged automatically by statutory force but arises only from an order of the Income-tax Officer, which he will make only after c....