COMMISSIONER OF WEALTH TAX Vs. GULAB DEVI

JUDGEMENT

(1.) BY this application under Section 27(3) of the Wealth-tax Act, 1957 (the Act"), the Commissioner of Wealth-tax, Jaipur, seeks directions from this court to the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, to refer the following question of law for the opinion of this court :

(2.) THE relevant facts are that during the assessment year 1982-83, Smt. Gulab Devi, the assessee, was a partner in Jewels Emporium, M. I. Road, Jaipur, to the extent of 30 per cent, share. She returned her net wealth at Rs. 4,99,100 for that year. Her wealth comprised, inter alia, of her share in the aforesaid partnership firm. THE said firm had valued its closing stock at cost and the gross profit for the accounting period as on the valuation date was Rs. 22,98,750. THE Assessing Officer noted that the fair market value of the closing stock of the firm had been undervalued by Rs. 11,23,400. He accordingly applied the provisions of Rule 2B(2) of the Rules as per the decision of the Supreme Court in the case of Juggilal Kamlapat Bankers v. WTO [1984] 145 ITR 485, and increased the returned wealth of the assessee by Rs. 3,37,020. However, in appeal the Appellate Assistant Commissioner of Wealth-tax, Kota Range, Kota, relying upon the Commissioner of Income-tax (Appeals)'s order dated December 29, 1986, made in the case of the assessee for the assessment years 1980-81 and 1981-82, held that Rule 2B(2) of the Rules cannot be invoked on the basis of gross profit shown by the assessee. He accordingly deleted the addition made by the Assessing Officer to the net wealth of the assessee. THE order so made by the Appellate Assistant Commissioner of Wealth-tax, Kota, dated February 17, 1988, was upheld by the Tribunal in W. T. No. 94 (JP) of 1988, dated March 15, 1989. THE Revenue sought reference under Section 27(1) of the Act but the Tribunal declined to refer the above question for the opinion of this court.

(3.) THE application is dismissed.