Ramaswami, J. - (1.) This appeal is brought by certificate granted under Section 29 (1) of the Wealth Tax Act, 1957 (hereinafter referred to as the Act) against the judgment of the Calcutta High Court dated January 29, 1966 in Wealth Tax Matter No. 372 of 1961.
(2.) The respondent is a company which is assessed to wealth-tax for the assessment year 1957-58, 1958-59 and 1959-60. In computing the net wealth of the respondent on the respective valuation dates the Wealth Tax Officer proceeded under Section 7 (2) (a) of the Act and included the full value of the fixed assets as shown by the respondent in the respective balance-sheets without any adjustment, after rejecting its contention that the fixed assets should be assessed at their written down value as computed for the purposes of income-tax. In the assessment order for 1957-58 the Wealth Tax Officer gave his reasons as follows: "The assessee claimed that since the full amount of depreciation which was admissible under the Income-tax Act was not provided in the balance-sheet the amount of depreciation not provided for earlier should now be deducted from the value of the assets in order to arrive at the net wealth. This contention can hardly be accepted. The depreciation allowable under the Income-tax Act does not determine the market value of the assets. The object of allowing depreciation in the income-tax assessment is quite different. For the purpose of the Wealth Tax assessment the Value of the assets as estimated by the assessee itself in its balance-sheet has been accepted."
(3.) Similarly in his assessment order for 1958-59 the Wealth Tax Officer stated as follows:- "Excluding the value of land, the total value of the fixed assets as per balance-sheet amounts to Rs. 60,53,811 whereas the assessee has shown in its return the value of the same at Rs. 7,69,435. These values have been shown by the assessee on the basis of income-tax written down value and not on the basis of the balance-sheet values as required under the global system of valuation. It is common knowledge that the values of imported machinery has increased considerably during the last few years and, on the valuation date, I do not think that their value should be less than that provided for in the balance-sheet." ;