SENGUPTA, J. - (1.) IN this reference under S. 27(1) of the WT Act, 1957 ('the Act) for the asst. yr. 1981-82 the following questions of law have been referred to this Court: "1. Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that r. 1D of the WT Rules, 1957 is directory and in directing the WTO to accept the value of the unquoted shares disclosed by the assessee on the basis of the report of the registered valuer? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in directing the WTO to accept the valuation of the unquoted shares of Jayant Investment Corporation (P) Ltd. as disclosed by the assessee on the basis of the report of the registered valuer?" Shortly stated, the facts are that the wealth-tax assessment of the assessee for the asst. yr. 1981- 82 was first completed under S. 16(3) of the Act on 22nd Jan., 1985 by the WTO. Subsequently, the assessment order was revised under S. 35 of the Act on 7th Jan., 1956.
(2.) IN course of the assessment proceedings, the WTO noticed that the assessee along with the other co-sharers had held coffee land and other assets at Billigiri Rangan Estate. He also held certain shares in the Hyderabad Agencies (p) Ltd., Birla Brothers (P) Ltd. and Jayant Investment Corporation (P) Ltd. The shares of all these companies were not quoted in any recongised stock exchange. The assessee declared the value of his shares in Billigiri Rangan Estate at Rs. 3,59,693 on the basis of a report of a recognised registered valuer. The WTO adopted the valuation of the shares of the assessee in Billigiri Rangan Estate on the basis of CBDT Circular No. 357, dt. 26th March, 1983 (See Taxmann's Direct Taxes Circulars, Vol. 1, 1985 edn., p. 1457) at Rs.4,43,350.
(3.) THE assessee had also declared the value of the shares of the Hyderabad Agencies (P) Ltd. at Rs. 12.81 per share, that of the Birla Brothers (P) Ltd. at Rs. 910 per share and of the Jayant Investment Corpn. (P) Ltd. at Rs. 26.84 per share on the basis of the report of a registered valuer. The WTO however, made valuation under r. 1D of the WT Rules, 1957 of the shares of the Hyderabad Agencies (P) Ltd. at Rs. 16.57 per share and those of the Birla Brothers (P) Ltd. at Rs. 1260.06 per share (as per revised order under S. 35). The WTO adopted the Valuation of the shares of the Jayanat Investment Corporation Ltd., as per Board's Circular No. 332A, dt. 31st March, 1982 (See taxmann's Direct Taxes Circulars, Vol. 1, 1985 edn., p. 1459) at Rs.102.04 per share.;