- (1.) In these appeals by certificates, filed by the same assessee; only one question arises 'for decision viz. , whether on the facts and in the circumstances of the case, in determining the break-up value of the shares held by the assessee in M/s. Indra Singh and Sons Private Ltd. (to be hereinafter referred to as the "company") the estimated tax liability not provided for in the balance-sheet of the company should have been deducted the tribunal held against the assessee on that question but at the instance of the assessee it submitted that question along with several other questions to the High court for. its opinion. The High court answered all the questions referred to it in favour of the Department by its judgment dated 2/08/1967. But, thereafter, on an application by the assessee, it amended the answer given by it to question No. 2 (t) , the question referred to earlier, purporting to follow the decision of this court in Kesorem industries and Cotton Mills Ltd. v. Commissioner of Wealth Tax (Central) , calcutta. Aggrieved by the amendment so made, the Commissioner of wealth-tax, West Bengal, has come-up in appeal to this court.
(2.) In these appeals we are concerned with the Wealth-tax assessment of the assessee for the years 1957-58 and 1958-59 for which the relevant valuation dates are 31/03/1957 and Ma 31/03/1958. The material facts bearing on the point in issue as set out in the statement of the case are:
(3.) The assessee is an individual. On the relevant valuation dates he was holding 650 ordinary shares of the face value of Rs. 1,000. 00 each in M/s. Indra Singh and Sons Pvt. Ltd. The Wealth Tax Officer valued those shares at Rs. 4,281. 00 per share as on 31/03/1957 and Rs. 3,884. 00 per share as on 31/03/1958. These shares were not being sold in the market. Hence the Wealth Tax Officer valued them on the basis of the assets and liabilities of the company as disclosed in its balance-sheets. During the assessment of the Wealth-tax for the assessment year 1957-58, the assessee claimed that for determining the value of the shares on the basis of assets and liabilities of the company, the Wealth Tax Officer should take into consideration the tax liability of the company amounting to rupees eight lakhs which had not been shown in the balance-sheet. During the assessment on the wealth-tax for the assessment year 1958-59, the assessee claimed that. in computing the value of the shares on the basis of the assets and liabilities of the company, the Wealth Tax Officer should take into consideration the tax liability of Rs. 9,50,000. 00 not shown in thebalance-sheet. The Wealth Tax Officer rejected those contentions. He proceeded to assess the assessee in respect of both those years on the basis of the balance-sheets. The Appellate Assistant Commissioner confirmed the order of the Wealth Tax Officer. On a further appeal to the tribunal, the tribunal came to the conclusion that the estimated tax liability of the assessee as on, the valuation dates should be deducted from the gross value of the assets. But it took the view that if there were any encroachments on the assets of the company for the tax liability, the company certainly would have provided for it in its accounts before presenting the balance-sheet and the profit and loss account to the shareholders and the company did not make any provision for the estimated tax liability because it was satisfied that the existing reserve plus the advance payment made under S. 18-A coupled with the refund, the company would get under S. 18 (5) of the Income tax Act on the dividend credited to the profit and loss account would be more than enough to cover the tax' liability during the years in question. In other words the finding of the tribunal was that, though the estimated tax liability of ,the company was liable to be deducted before arriving at the value of the assets of the company, on the facts of this case, no provision need be made for the same, as several other assets of the company were also not taken into consideration in arriving at the value of the assets. The tribunal was of the opinion that the existing reserve of the company, the advance tax paid by the company which was to be adjusted towards the tax liability of the company and the refund to which the company was entitled under S. 18 (5) of the Income Tax Act were sufficient to cover the tax liability of the company. This was essentially a finding of fact. ' The assessee did not ask the tribunal to submit any question to the High 'court challenging the correctness of that finding, No arguments were advanced before the High court to show that that finding of the tribunal was vitiated in any manner.;