Sankar Prasad Mitra, J. - (1.) This is a reference under Section 27(3) of the Wealth-tax Act, 1957. The questions on which the Tribunal has been directed to state the case are as follows: "(1) Whether, on the facts and the circumstances of the case, the value of the goodwill of the assessee as stated in the valuers' report, dated 22nd July, 1963, was calculated in accordance with law ? (2) Whether, on the facts and in the circumstances of the case, the" decision of the valuers as stated in the said report without any reason in support of it was in accordance with law ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in disposing of the appeal on the basis of the said decision of the valuers ? "
(2.) The assessment year is 1958-59, the relevant valuation date being the 31st December, 1957. The Wealth-tax Officer computed the value of the respondent's net assets on a global basis in terms of Section 7(2)(a) of the Wealth-tax Act by deducting the liabilities from the assets as appearing in the respondent's balance-sheet drawn on 31st December, 1957. In the balance-sheet " goodwill " has been shown on the assets side at a figure of Rs. 10 lakhs. The Wealth-tax Officer included this " goodwill" in the aggregate value of the assets.
(3.) Before the Appellate Assistant Commissioner it was contended inter alia, that the value of the goodwill should have been excluded from the computation of the net wealth of the company. The Appellate Assistant Commissioner, following his order relating to the respondent's appeal for the year 1957-58, rejected such contention and confirmed the action of the Wealth-tax Officer.;