Commissioner of Wealth Tax vs Latha D. Pai

Rama Jois, J.—These references are made at the instance of the Commissioner of Wealth-tax, Karnataka-II, Bangalore, by the Tribunal u/s 27(1) of the Wealth-tax Act, 1957 ("the Act" for short).

The questions referred for the opinion of this court are :

"(i) Whether, on the facts and in the circumstances of the case, in valuing the assets held by the assessee in Bharat Bidi Works Pvt. Ltd., the amount representing the advance Income Tax paid by the company should not be deducted from the amount representing the provision of taxation for the assessment year 1973-74, on a proper interpretation of rule 1 D of the Wealth-tax Rules, read with the Explanation II(ii)(e) of the Wealth-tax Rules ?

(ii) Whether, on the facts and in the circumstances of the case, the value of the National Defence Certificates for Rs. 70,000 held by the assessee was exempt u/s 5(1) read with section 5(1A) of the Wealth-tax Act, 1957, for the assessment year 1973-74 ?"

As far as the first question is concerned, it is covered by the decision of the court in Commissioner of Wealth Tax Vs. N. Krishnan, . Following the ratio of the said judgment, we answer the said question in the negative and in favour of the Revenue.

The second question is also covered by the decision of this court in K.S. Ayodhyanath Vs. Commissioner of Wealth Tax, Karnataka, . Following the ratio of the said judgment, we answer the second question also in the negative and in favour of the Revenue.