Shyamal Kumar Sen, J. - (1.) On an application under Section 27(1) of the Wealth-tax Act, 1957, the Tribunal has referred the following questions : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that, for the purpose of the valuation of unquoted shares of Messrs. Karam Chand Thapar and Bros. Ltd., an investment company, in accordance with the Central Board of Direct Taxes Circular No. 332A, dated March 31, 1982 (see [1982] 135 ITR (St.) 11), the net maintainable profit should be arrived at after deducting the provisions for pension and gratuity liabilities as provided in the balance-sheet"
(2.) The facts shortly are as follows : The assessee is an individual. The assessment year involved is 1979-80 for which the valuation date was March 31, 1979. The assessee disclosed the value of the unquoted shares of Messrs. Karam Chand Thapar and Bros. Ltd. at Rs. 210 per share on the basis of a valuation report. The Wealth-tax Officer, however, valued the shares at Rs. 445 each. He determined the value of the shares in accordance with the Central Board of Direct Taxes Circular No. 332A, dated March 31, 1982, reported in [1982] 135 ITR (St.) 11.
(3.) The assessee preferred an appeal before the Commissioner of Income-tax (Appeals) and contended, inter alia, that the liability towards the gratuity and pension fund shown in the balance-sheet and taken into account by the registered valuer while arriving at the maintainable profit should also have been considered by the Wealth-tax Officer. The Commissioner of Income-tax (Appeals) accepted the contention of the assessee and directed the Wealth-tax Officer to see whether the gratuity and pensionary liabilities were in the nature of ascertained liabilities evaluated to be taken into account for determination of the maintainable profit. If the Wealth-tax Officer finds the said liabilities to be in the nature of current provision, they have to be naturally adjusted in the determination of the maintainable profit.;