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2001 PTD 2536

COMMISSIONER OF WEALTH TAX vs T.S. SANTHANAM (HUF) and others

Citation2001 PTD 2536
CourtSupreme Court of India
Case No.Civil Appeals Nos. 8499 to 8506 of 1995
Date2001-01-31
Judge(s)S. P. Bharucha, N. Santosh Hedge, I. Y. K. Sabharwal
ResultAppeals allowed

ORDER

1. The assessee has been served but has not chosen to put in an appearance.

2. The question before the High Court at the behest of the Revenue read thus: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that for purposes of computation of the intrinsic value of unquoted shares under rule ID of the Wealth Tax Rules, 1957, the am- ount of advance tax paid by the company and shown on the assets side of the balance-sheet should not be deducted from the tax payable in determining whether the provision for tax was in excess over the tax payable with reference to the book profits in accordance with the law applicable thereto within the meaning of clause (ii)(e) of the Explanation to the said rule?"

3. The High Court answered the question in favour of the assessee relying upon the decision in L.G.

4. Balakrishnan v. CWT (1988) 173 ITR 266. That decision is no longer good law. The question is now governed by the decision of this Court in Bharat Hari Singhania v. CWT (1994) 207 ITR 1.

5. The civil appeals are, therefore, allowed and the question is answered in favour of the Revenue.

6. No order as to costs. - . revisions by the competent authorities. Therefore, it is advisable to consult the official sources or legal professionals for the most up-to-date and accurate information.

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