COMMISSIONER OF WEALTH TAX Vs. KESORAM INDUSTRIES AND COTTON MILLS LTD.

JUDGEMENT

(1.) In this reference under Sec. 27(1) of the Wealth -tax Act, 1957, the following two questions have been referred to this Court by the Income -tax Appellate Tribunal:

(2.) The Assessee Messrs. Kesoram Industries and Cotton Mills Ltd. is a public limited company and the reference is in relation to its assessment to wealth -tax for the assessment years 1958 -59 and 1959 -60 for which valuation dates are March 31, 1957 and March 31, 1968, respectively. So far as the first question is concerned, an appeal was taken by the Assessee company from the decision of this Court on a similar question in respect of the assessment year 1957 -58, i.e. the immediate preceding year, to the Supreme Court. The decision of the Supreme Court is reported in Kesoram Industrial and Cotton Mills Ltd. v/s. Commissioner of Wealth -tax, West Bengal : (1966) 59 I.T.R. 767, and the facts may be stated from the judgment in that case:

(3.) For the assessment years under reference the balance in the capital reserve account had been reduced to Rs. 1,44,26,594. The Assessee contended before the Wealth -tax Officer that for the purpose of wealth -tax assessment, the book value of the assets should be ignored and instead of the depreciated value as taken for the purposes of income -tax assessment should be adopted. The Wealth -tax Officer rejected the said contention and computed the net wealth, of the Assessee on the basis of the value of the assets as disclosed in the company's relevant balance -sheet.