- (1.) This appeal on certificate is directed against the judgment of Patna High Court whereby that Court answered the following three questions referred to it under Section 27 of the Wealth Tax Act, 1957 (Act No. 27 of 1957) thereinafter referred to as the Act) against the assessee : (l) Whether in computing the 'market value of the shares the assessee is entitled to the deduction of a sum of Rs. 2,30,546 by way of brokerage commission (2) Whether on a true construction of Sections 5 (1) (viii) and 5 (1) (xv) of the Wealth Tax Act, the assessee is entitled to the exclusion of the value of jewellery amounting to Rs. 27,27,330 from the computation of his total wealth (3) Whether any part of the amount of Rs. 36,87,419 fixed as compensation payable to the assessee under the Bihar Land Reforms Act is liable for inclusion in the total wealth of the assessee -
(2.) The assessee was former Maharajadhiraja of Darbhanga. The matter relates to the assessment year 1957-58, the relevant valuation date for which was March 31, 1957. The assessee filed a return on April 22, 1958 declaring a net wealth of Rs. 2,77,489. A revised return was filed subsequently showing the total wealth to be Rs. 2,69,58,130. The Wealth Tax Officer determined the net wealth of the assessee to be Rs. 4.57,85,996.
(3.) The assessee held shares and stocks in various limited companies. In the return filed by him the assessee gave correct valuation of those shares and stocks as given in the stock exchange quotations and the quotations furnished by well-known brokers, but he claimed a deduction of a sum of Rupees 2,30,546 by way of brokerage. It was contended on behalf of the assessee that in effecting the sales o f the shares and stocks, brokerage would have to be paid. The Wealth Tax Officer disallowed the claim in this respect on the ground that there was no provision for deducting the brokerage commission.;