COMMISSIONER OF WEALTH TAX Vs. SARDARMAL RAJENDRA PRASAD

LAWS(RAJ)-1994-4-70

HIGH COURT OF RAJASTHAN

Decided on April 19,1994

COMMISSIONER OF WEALTH TAX Appellant

VERSUS

SARDARMAL RAJENDRA PRASAD Respondents

JUDGEMENT

- (1.) THE Tribunal, Jaipur Bench, Jaipur, has referred the following question of law for the opinion of this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in holding that rule 1D of the WT. Rules would not apply in a case where the valuation date of the company and the assessee do not coincide and consequently the rule being only directory the proper method to value the shares is the yield method ? " The question of law whether r. 1D of the Wealth -tax Rules would be directory or mandatory on the facts enumerated is a question of law came up for consideration before the Supreme Court in Bharat Hari Singhania vs. CWT (1994) 118 CTR (SC) 125 : (1994) 207 ITR 1 (SC), wherein it was ruled that the aforesaid rule is mandatory. The Tribunal had held that it was directory. Learned counsel for the parties are agreed that in view of the aforesaid decision of the Supreme Court, the question referred for the opinion of this Court has to be answered in favour of the Department, that is in the negative. We order accordingly. ;

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