Garg, A.M. - (1.) THIS is an appeal by the assessee against the order of the Commissioner of Wealth-tax (Appeals) for assessment year 1991-92.
(2.) The only dispute in this appeal is against the estimation of the value of the motor cars for the purposes of computing the net wealth of the assessee. The assessee has declared the value of the motor cars on the basis of their written down values as per the balance sheet. The Assessing Officer, however, adopted the insurance value as the value of the motor cars for the purposes of computing the net wealth of the assessee. The CWT(A) did not find any reason to interfere with the action of the Assessing Officer. He held that evidently the written down value of a motor car under the Income-tax Act is not indicative of its market value as on the valuation date. According to him, the Assessing Officer had proceeded on a reasonable basis to estimate the value of the motor cars on the basis of their insured value during the relevant period. The assessee is in appeal before us. The learned counsel of the assessee submitted that for the purposes of adopting the value of the motor car the provisions of sub-rule (2) of rule 14 of Schedule III would be applicable. As per that provision, the value of an asset shown in the Balance Sheet is to be taken at written down value, if the depreciation is admissible on that asset. The motor cars are business assets and are shown in the balance sheet. Therefore, according to him, their value is to be taken as per sub-rule (2) on the basis of their written down value. He further submitted that the insurance value does not represent the market value and, therefore, the Assessing Officer was wrong in adopting the same for the purposes of computing the net wealth of the assessee.
(3.) THE learned departmental representative, on the other hand, drew our attention to the provisions of clause (b) of sub-rule (2) of rule 14 of Schedule III, under which, if the value of any asset referred to in clause (a), (depreciable asset in this case) determined in accordance with the provisions of this Schedule as applicable to that particular asset or if there are no such provisions, determined in accordance with rule 20, exceeds the value arrived at in accordance with clause (a) by more than 20 per cent, then the higher value is to be taken as the value of the asset. He further submitted that the insurance value does represent the market value of the asset and the difference between the written down value as declared by the assessee and the insurance value as adopted by the Assessing Officer being more than 20 per cent, the higher value is to be taken as the value of the asset.;